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So I’ve found a house that we really want and made an offer of 300k and it was accepted! We have had an inspection would turned out pretty good and have signed a contract to lock in, just waiting on the seller to sign. So I remember the mortgage lender saying closing costs are probably at the worst 15k, so I’m expecting that to be the worst.
The home is located in Medford NY with the taxes last year reported at 6700 after star, believe it was 7800 without star.
So today while speaking with the lender I asked what our total payment will be at closing. She said 30,700. I almost said ah f***! So the down payment, fha loan, is 10.5k so 20,200 for closing?! Does this sound right? I search alittle and saw closing costs for a 300k home at 6k to 15k the worst, she said she’s alittle on the higher end but that’s 5k away from the max that I thought. I was hoping to have a decent amount left over to do some minor updates to the house but this is going to be tight :/
Does this sound right to you guys?
Thanks!
-Ryan
If you have already applied you should have an official Loan Estimate that lists out all the associated fees and costs to your transaction. If you haven't submitted an application, your LO is just estimating. Ask her to send you a copy of a closing cost worksheet. You won't get a Loan Estimate until you have a formal application though.
Sounds like the same 'ol "bait-and-switch" that I've been through myself.
They get you to step into a deal, then they "Oh...by the way....we can't do what we said we'd do....."
They'll probably try to raise the interest rate as well.
They're hoping you'll take whatever they throw at you to save the deal. Happened to me a bunch of times as an investor. Anymore, I just pay cash then go for a re-fi once I have the property in hand. They can't pull this crap if you already possess the property.
How much are transfer taxes, if any? Sounds high, but I avoid FHA as both a buyer and seller... I have bought ten homes and paid cash for the last 6...i get the seller to provide owners title policy, no need for lenders, and split escrow fees... gotten it done for as little as 200 bucks... even had WFC giving me back two percent towards closing costs.
First, look at the estimation of Homeowners Insurance and Property taxes due at closing. also NY-specific taxes. Then, know that the FHA Up-Front MIP, which is about five grand, will be rolled in, but the way the paperwork is laid out, it can be confusing.
You probably have $1500-1800 in various lender fees.
Look to see if there is a Discount Fee.
Also your Realtor/Lender should have had this discussion with you up front so as to facilitate at least a conversation about negotiating such that the seller would "pay" your closing costs.
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