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I was just told I needed to pay a year worth of hoke insurance up front?
The only fees that are "Set" from buyer to buyer are the lender's processing, underwriting, and administration fees, for that lender. Every lender will have different fees, but usually within about a $200 range either way.
Other "set" fees are the escrow fees for the title company, recording fees, and courier fees they use to get paperwork here and there.
Everything else is per transaction. Yes, you have to pay 1 full year of home owner's insurance. You also have to pay a lender's title policy. In my area, the owner's title policy is paid by the seller 99.9% of the time. You also have to fund your escrow account, usually 2-3 months, depending on your lender.
Your costs are probably going to be more than $4k, but if you ask for too much that you can't use, you lose that money. The seller gets to take it, not you. For example, if you try to get exact and ask for $5500, but your closing costs are only $5200, the seller just got $300 extra dollars that they were expecting to spend, but you can't have it in cash. You just financed an extra $300 over 30 years. You should ask for less so you don't waste any.
Fund your escrow acct? Not sure what that means. Don't know what lender title policy is either. Recording and Courier fees? I don't know what any of that is unfortunately. I am not even to sure what Escrow does. Is it true that earnest money goes toward your down payment?
The lender said worst case senario we would owe $1500 over the 4K paid by the seller.
The realtor also told me that if the AC breaks down within a year (it's 30 years old) our home warrantee would cover it and all we pay is a deductible?
In post #4 of your "i'm so scared of getting screwed" thread, bbronston gave you a link to a great guide to home buying and mortgages It explains escrow accounts, title insurance and many other things you are asking about. PLEASE read it.
Fund your escrow acct? Not sure what that means. Don't know what lender title policy is either. Recording and Courier fees? I don't know what any of that is unfortunately. I am not even to sure what Escrow does. Is it true that earnest money goes toward your down payment?
The lender said worst case senario we would owe $1500 over the 4K paid by the seller.
The realtor also told me that if the AC breaks down within a year (it's 30 years old) our home warrantee would cover it and all we pay is a deductible?
It sounds like you need to have a sit-down talk with your mortgage professional if they aren't explaining what an escrow account or anything else is. Why are you depending on strangers to help you understand when you have someone whom you hired to go over everything like you're a 5th grader trying to understand.
I didn't hire the lender. The realtor gave him my info and he called me.
If you are obtaining a mortgage with him, you are paying him at closing for the processing, underwriting, and administration of the loan. That's called hiring him... He works for you to get your loan closed and is there to answer your questions.
The only fees that are "Set" from buyer to buyer are the lender's processing, underwriting, and administration fees, for that lender. Every lender will have different fees, but usually within about a $200 range either way.
Other "set" fees are the escrow fees for the title company, recording fees, and courier fees they use to get paperwork here and there.
Everything else is per transaction. Yes, you have to pay 1 full year of home owner's insurance. You also have to pay a lender's title policy. In my area, the owner's title policy is paid by the seller 99.9% of the time. You also have to fund your escrow account, usually 2-3 months, depending on your lender.
Your costs are probably going to be more than $4k, but if you ask for too much that you can't use, you lose that money. The seller gets to take it, not you. For example, if you try to get exact and ask for $5500, but your closing costs are only $5200, the seller just got $300 extra dollars that they were expecting to spend, but you can't have it in cash. You just financed an extra $300 over 30 years. You should ask for less so you don't waste any.
I believe you can use anything leftover to buy down your rate. A good lender will help you not leave money on the table for the seller to get back.
If we agreed to the seller paying 4K in closing costs could we owe more at closing?
What does the 4K cover?
Since you are the buyer you will pay for things like oil left in the tank prepaid property taxes.
Your lawyers should have things pretty much worked out.
Oil left in tank? Not sure what means. The lender said the buyer pays the tax credit?
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