Closing Cost for a condo, please verify for me. (mortgage broker, credit report)

[petecheng]

Item
Appraisal fee 350.00
Credit Report 50.00
Mortgage Broker fee 452.5(paid)
Flood Monitoring 6.50
Flood Certification 14.50
Interest for 7 days at $28.5137 per day 199.60
Attorney's fees 650.00
Title insurance 949.09
Recording fees 300.00
Survey 500.00
Departmental Searches 450.00
Total 3,469.69

This doesn't include 850 that my attorney charges.

BTW, anyone know what's "Departmental Searches" fee? I live in NJ

Also why is the bank give me the estimate? Shouldn't that be my Attorney's job? I am first time buyer, am little confused here.


Thank you.

[Zarah19]

You better be prepared to may more than that are you paying for points?

[petecheng]

zarah, i don't understand what you mean.

[jmdurett]

If it's a condo, you shouldn't need to pay for a survey.

[MaverickDD]

The bank is giving you an estimate of the settlement cost because they are required to by law. The $650 attorney's fees included on it are their estimate of what your lawyer will charge you. You know this to be $850 instead of $650.

My quick glance of the list that you've prepared has me opining that it's relatively close, but no, I don't know what "Departmental Searches" are. They're probably some miscellaneous fees for legal work that has to be done.

The key is that these are all estimates. Yes, your attorney should be able to give you more exact figures. Most of them will appear on your HUD-1 settlement statement at the closing. (And no, I'm not a lawyer but I've closed many real estate deals without one.)

[petecheng]

Originally Posted by MaverickDD

The bank is giving you an estimate of the settlement cost because they are required to by law. The $650 attorney's fees included on it are their estimate of what your lawyer will charge you. You know this to be $850 instead of $650.

My quick glance of the list that you've prepared has me opining that it's relatively close, but no, I don't know what "Departmental Searches" are. They're probably some miscellaneous fees for legal work that has to be done.

The key is that these are all estimates. Yes, your attorney should be able to give you more exact figures. Most of them will appear on your HUD-1 settlement statement at the closing. (And no, I'm not a lawyer but I've closed many real estate deals without one.)

Thank you MaverickDD,

That clears it up, this estimate is not very accurate, because my mortgage broker told me that I am getting a fixed rate at 5.5006% APR, and the paper says 5.75% APR.

I saw on couple of websites that the Departmental Searches is required in NY, but not NJ. I guess my lawyer will clear this up for me.

I am so afraid of get cheated cause I've heard horror stories.

Thanks again.

[UKOK]

You will only need a survey certificate on a condo, not a full survey. This price seems high. I would have thought $275 would be more like it.

Listen - this is your money being spent. YOU get to decide which title firm you use, which survey company etc. Call around and get some quotes and tell your attorney who you want to use....don't just accept what you are given.

[lenny8000]

Those costs are not the only thing you are going to pay...does the bank require you to escrow? Also, this does not include the home association fees that your lawyer will inform you closer to the date, you can call them and they will give it to you. Depending on when you close you might have to prorate some of the charges that the current owner paid which are done on quaterly basis, such as sewer system, taxes etc. I just closed on the condo and had to pay all those fees but I wouldn't trust that estimate it does not include any of the stuff i mentioned and chances are you will have to pay it at your closing....all the searches and fees you will have to pay, cant avoid them....also be carefull with the estimate that they give you on the title seach...mine was 350 bucks higher then the bank estimated(your attorney will let you know the exact number)


The APR on one of the papers will be higher then the rest of them because it includes closing costs but you still get your rate of 5.5%. if you are paying points to a broker they arent going to be on that estimate but will be on the HUD form....

surveys are not required but my bank did....dont know how it works exactly

[petecheng]

I am not paying for point, two days ago, I signed a lock-in agreement at 5.006%, so this estimate is wrong.

I will be contacting my lawyer to discuss about this.

My question is really why is the bank giving me a rough estimate where some of these fees don't even apply.

I do know about the taxes and maintenance fees to pay in advance. I think my lawyer will be the one that gives it a good detail review, and everything should come out correctly when we get closer to the closing which's 28th of this month.