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First, those only add up to $10,700, not 13K. Second, I don't think they're that high, considering over half of it just pre-payment and not real "costs".
Taxes are a bit steep for only a $160K house (I guess a full 1%) - mine here in VA were 0.6% (plus the seller had to pay another 0.1% grantor tax).
I received an estimate below for a 400k house, with 20% downpayment, so a 320k loan amount. Any thoughts on anything that I could ask to be reduced/waived and any that should not have been part of the estimate below. With a 20% down, 150k household income, and a credit score of over 800 - I feel this is a high estimate even for a first time homebuyer.
I don't know if this varies by State (I doubt it) but unless you put down substantially more than 20%, it has been my experience that the lender will insist on paying the taxes and insurance, therefore requesting escrow!
Pretty much a standard across the industry in all states that at 20% or more down, escrowing for taxes and insurance is 100% optional.
I probably added wrong, but i came up with 11k including the prepaids. Nothing looks out of place. you'll get credited for the owner's title insurance. you don't actually pay that. Wow. your transfer fees ARE high. The prepaid items (fees paid in advance) unfortunately always look terrible, but they're just filling up that escrow account with reserves.
How does it work when selling a house? Do you have to pay fees to sell a home? I know it's probably an off topic question, but I'm just curious how that works. Seems like whatever you pay for your home you just add about 10K onto it, because of these "closing costs". Do you ever get these back? Seems crazy.
It's like buying tickets to a concert and they tack another 50 bucks on for fees.
I received an estimate below for a 400k house, with 20% downpayment, so a 320k loan amount. Any thoughts on anything that I could ask to be reduced/waived and any that should not have been part of the estimate below. With a 20% down, 150k household income, and a credit score of over 800 - I feel this is a high estimate even for a first time homebuyer.
Prepaid Items/Escrows
Intrest 15 Days at 29.67 per day $ 445.05
Hazard/Homeowners Premium $ 720.00
4 months Real Estate Taxes $ 4,000
2 months hazard insurance $ 120
Title Charges
Settlement Fee $ 350
Attorney Fee $ 1000
Title Insurance $ 2495
Recording Fee $ 550
Down Payment $ 80,000
Total Settlement Charges $ 10,700.05
Seller Credit $
Grant/prefund $
Total Cash needed $ 90,700.05
I am no expert but the above and the quote from the first post of thread looks reasonable(to me) no origination or underwriting fee.
Look at mine below builder quote for 380k house
origination fee - $3510
underwriting fee - $3522
appraisal fee - $395
credit report -$ 50
tax service - $89
flood certfication - $24
final inspection fee - $125
survey fee - $225
lenders titile insurance $850
arrorney fee $540
misc - $250
owners title insurance - $734
state tax stamps - $1434
escrow
homeowner insurance(3 months) and property taxes(5 months) $1149 after adjustment
dailyinterest charges - $700
hoa dues - $725
hoa initiation $600
Last edited by bindas45; 08-27-2012 at 09:29 AM..
Reason: added $
Initial Loan amount is: $459,328
Conventional 30-yr loan (for a new construction in MD) with 20% down at a quoted rate of 3.750%Note: The quoted rate is from first week of June before the recent drop. The home will be ready for settlement in November (so here's hoping for the rate to drop further).
A) Adjusted Origination Charges: $5,450.23
-The credit or charge for the interest rate of 3.750% is included in "Our origination charge."
-No credit or charge (points) for this interest rate.
B) Your Charges for All Other Settlement Services: $23,819.44
1. Required services that we select (These charges are for services we require to complete your settlement. We will choose the providers of these services)
-Appraisal Fee: $425.00
-Tax Service Contract: $58.00
-Credit Report Fee: $62.50
-Flood Certification Fee: $15.00
-Final Inspection Fee: $150.00
2. Title services and lender's title insurance: $2,307.61
3. Owner's title insurance: $1,400.08
4. Required services that you can shop for
-Survey: $110.00
5. Government recording charges: $120.00
6. Transfer taxes (These charges are for state and local fees on mortgages and home sales): $13,062.40
7. Initial Deposit for Escrow Account (Property Taxes and all insurance): $4,043.15
8. Daily interest charges ($47.19/day for 30 days, if settlement is 11/01/2012): $1,415.70
9. Homeowner's Insurance (Hazard Premium): $650.00
$29,269.67 sounds beyond ridiculous for closing though the lender is paying $20,000 of it. However, that still leaves $9,269.67! Are there anything especially outrageous or do most of the charges fall in line with the norm for Maryland? How much would the transfer tax decrease since we're 1st time buyer (the person doing the GFE had not included this fact in his calculation).
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Your thoughts on the estimate below
(I doubt it) but unless you put down substantially more than 20%, it has been my experience that the lender will insist on paying the taxes and insurance, therefore requesting escrow!
