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Old 09-10-2013, 10:28 AM
 
Location: NYC
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Hubby and I are hoping to buy a house next year. We are saving, and just looked up the closing costs, which are enormous here.

Does anyone know if you can roll the closing costs into the mortgage in Texas? I know we can ask the seller to pay for some, but would like to know if the balance can go into the mortgage.
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Old 09-10-2013, 11:16 AM
 
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Quote:
Originally Posted by veuvegirl View Post
Hubby and I are hoping to buy a house next year. We are saving, and just looked up the closing costs, which are enormous here.

Does anyone know if you can roll the closing costs into the mortgage in Texas? I know we can ask the seller to pay for some, but would like to know if the balance can go into the mortgage.
No, but you can have the seller contribute toward them. Beyond that, you can have your lender cover more/the rest by accepting a higher interest rate.
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Old 09-10-2013, 11:31 AM
 
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Be conscious of when you go into contract. If you go into contract in September or October, you will have to add a full year of property taxes to the closing costs, plus 15 months of Homeowner's Insurance, if you escrow taxes and insurance. Even if you don't, you will have to pay taxes due, and a year of HOI, but escrowing stings Autumn buyers.

Have your lender work up a mock GFE with the tax, insurance, and prepaid interest numbers, and then have your realtor negotiate that these are paid by the seller, which rolls them into both the loan and down payment, as it is a component of the price. Remember, the home must appraise for the amount of the price or higher.
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Old 09-10-2013, 12:48 PM
 
Location: NYC
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Thank all, not looking to buy until next year. Had a bit of sticker shock when I saw the closing costs in Texas are so high.
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Old 09-12-2013, 09:23 PM
 
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Most of the time you can get the seller to eat most of the closing costs. I've bought 3 in Texas and never came out of pocket more than 8k including down payment. But these were houses that cost between 140-160k with 3.5% down.
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Old 09-13-2013, 08:06 AM
 
Location: NYC
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piyf, thanks so much. We were looking forward to renting for a year, and it has been a nightmare. I truly thought I would never want to buy a house again, and now I can't wait!
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Old 09-13-2013, 08:26 AM
 
Location: Austin
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Closing costs in Texas aren't much different than other states. You have basic lender fees of about $1000-1400. Then the rest are third party fees that you would have everywhere. You have 1 year of home owner's insurance plus 2-3 additional months. You will have 2-3 months of taxes collected. You will have interest from your closing date until the end of the month since you skip a month in mortgage payment.

Then, you have the escrow fee to close the file, $250-350, recording fees of like $24, and courier fee to the lender of about $50. Lender's title coverage, depending on price point is about $200-250.

What other fees are you seeing? If there is an HOA, you will have an HOA fee, but we don't have transfer taxes like other states. When someone says you have to pay 15 months of taxes, the SELLER is paying for the portion they lived in the house, so you aren't paying that. The seller does an instant credit to you at closing.

Closing costs in Texas are around $4000-5500 depending on price point and that's with 0 points.

And this is a major FYI, sellers NEVER pay your closing costs. You are always financing them!! If you buy a house for $200k and ask the sellers to pay $5000, that means you bought the house for $195,000 and they rolled $5k into your financing.
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