Closing costs in Home Purchase (Frisco: real estate, homeowners insurance, mortgage)

[ts_123]

Wondering if I'm paying too much or if I even have control on closing costs? I'm purchasing a house in Frisco (all cash hence no mortgage) for approximately $700K.

The title company has stated the closing costs to be almost $4,000 which is the Owners Title Insurance...this is after the builder is covering the Title Policy cost.

Does this make sense?

Thanks,

[TexasRedneck]

The Title Insurance protects you in case someone else tries to lay a claim. You COULD refuse it - but it wouldn't be a smart move, IMO.

[ts_123]

Originally Posted by TexasRedneck

The Title Insurance protects you in case someone else tries to lay a claim. You COULD refuse it - but it wouldn't be a smart move, IMO.

It's new construction from our builder. Who could be trying to lay a claim aside from our builder?

Thanks for your reply.

[Rakin]

Someone would have to look at your Preliminary Closing statement to see it it's all OK. You will see a charge for the Title Policy on page 2 but a credit on page 1 for the same amount if the Builder is paying. It's a weird way they do this (govt rules).

Your charges do not seem unreasonable but I'd have to see it to know all the charges. Get the title company to explain to you before you go to closing.

A bunch of the money may be your homeowners Insurance they are collecting.

[Rakin]

Originally Posted by ts_123

It's new construction from our builder. Who could be trying to lay a claim aside from our builder? .

It protects you against title problems going back to the time Texas was created. If the builder did not pay a contractor or some other previous problem. You want a title policy. You said the builder was paying.

[Stevehanrahan41]

Originally Posted by ts_123

Wondering if I'm paying too much or if I even have control on closing costs? I'm purchasing a house in Frisco (all cash hence no mortgage) for approximately $700K.

The title company has stated the closing costs to be almost $4,000 which is the Owners Title Insurance...this is after the builder is covering the Title Policy cost.

Does this make sense?

Thanks,

Paying 700k in cash for a house, yet balking at 4K for the chance to protect yourself later on? Don’t cheap out on it.

[WorldKlas]

Research the diff between the Title Policy paid by your seller and Owners Title policy. We did and we declined purchasing the Owners’ policy because we did not see the value. Have the Title company explain it to you. They are two different policies.

[octo]

Ha! Title insurance. Due every time you want a mortgage because TX can’t record ownership properly. I wasted thousands on that obnoxious insurance. With all these real estate transactions you’d think that the legislature would fix this.

Somehow it’s accepted that a home builder can sell you a house and land without having to guarantee that it’s clear for him to actually sell to you.

If you don’t buy it for your cash purchase, you probably are unlucky enough that some 6th generation descendend from a previous landowner tries to snatch your house with his old claim.