Closing Costs (RE agent, appraisal, 3%, agent)

[JENNYN]

Hi everyone,
I am buying a FSBO and am doing this all with the owner living out of state. They are working with a title company/atty and I just talked to the Title Co. and I have been quoted the following which to me seems questionable. Before I freak and go any further I wanted to ask your valuable opinion.

I'm paying $125k with 5k down

Closing conference - $50.00
Document Prep - 100.00
Handling Fee - 15.00
Recording Fees - approx. 634.20
Title Search - 250.00
Title Insurance - 490.00
HO insurance with 1st yr prepaid

Does this sound right or do I need to do/say something?

Thanks,
Jenny

[goodbyehollywood]

These costs are very low. There's no appraisal fee, no points, no origination fee and they didn't stick you with a lot of "junk fees," like a processing fee, an underwriting fee or courier fee. Closing and doc prep are a CODB, the recording/state fees are set by the state, and there are no prepaids or escrow fees. Your title insurance/search is in the range, so it looks to me like you've got a pretty good deal!

But it does sound like you need an attorney or someone to guide you through this. Since you don't seem to have a RE agent or financial person, I would suggest that you devote the money you saved on closing costs to having an attorney review your loan docs before signing them. JMO.

[gbone]

Originally Posted by JENNYN

Hi everyone,
I am buying a FSBO and am doing this all with the owner living out of state. They are working with a title company/atty and I just talked to the Title Co. and I have been quoted the following which to me seems questionable. Before I freak and go any further I wanted to ask your valuable opinion.

I'm paying $125k with 5k down

Closing conference - $50.00
Document Prep - 100.00
Handling Fee - 15.00
Recording Fees - approx. 634.20
Title Search - 250.00
Title Insurance - 490.00
HO insurance with 1st yr prepaid

Does this sound right or do I need to do/say something?

Thanks,
Jenny

First, you need to check all of this out with your attorney or Realtor and you need to get the above information in writing. Second, I'm in Tennessee and the average buyer closing costs typically run between 2.0%-2.8% of the purchase price, not counting the down payment. If your above numbers for closing is everything that you will be paying for closing costs then it looks like they will fall within this range. Hope this helps.

[leonard]

Originally Posted by JENNYN

Hi everyone,
I am buying a FSBO and am doing this all with the owner living out of state. They are working with a title company/atty and I just talked to the Title Co. and I have been quoted the following which to me seems questionable. Before I freak and go any further I wanted to ask your valuable opinion.

I'm paying $125k with 5k down

Closing conference - $50.00
Document Prep - 100.00
Handling Fee - 15.00
Recording Fees - approx. 634.20
Title Search - 250.00
Title Insurance - 490.00
HO insurance with 1st yr prepaid

Does this sound right or do I need to do/say something?

Thanks,
Jenny

Title search and insurance are rip offs today. With virtually everything computerized it takes just a moment to do the search. The Title companies have a sweet deal and are doing all they can to keep it. What they actually pay out in a valid claim is pennies on the 1000 dollar. Best return on an insurance investment a company can make and the most expensive charge, for the level of risk, that can be charged.

However no way to avoid it.

[Bazzwell]

Looks right in line, don't see anything unusual.

[oldmanbob]

All the fees are very low, and Leonard is wrong, you need title ins, and for the small fee, one episode, with some cloud on the title, and well worth it. Liens and all sorts of cloud on the title, can always show up, and after paying for the title ins, no sweat. They stand behind it, and then its their responsibility.

[oldmanbob]

Forgot to mention, be sure and get some type of warranty, as will help in case of heating and air failure, plumming and appliances.

[leonard]

Originally Posted by oldmanbob

All the fees are very low, and Leonard is wrong, you need title ins, and for the small fee, one episode, with some cloud on the title, and well worth it. Liens and all sorts of cloud on the title, can always show up, and after paying for the title ins, no sweat. They stand behind it, and then its their responsibility.

The cost is fine IF there were a real likelihood of a defective title. However it is such a rare event that the Title companies could charge $10.00 and make a LOT of money.

When was the last time you heard of a defective title? How much did it cost the Title company to fix it?

Liens are only a problem if properly filed and any good search by the Title company, the one on the hook for not finding them, would identify such liens. In the past this was a legitimate problem, but not any more.

Do you need the Title ins, yes, but the cost is way too high today.

[ilovebdj]

I had to pay my property taxes when I closed.....you may want to check into that, as well.

[oneasterisk]

You should talk to your lender too to get a Good Faith Estimate. Like gbone said though, closing costs are around 3% of the purchase price. Your prepaid costs may fluctuate depending on when in the month you close because of property taxes.