What to do about closing costs?? (PMI, escrow, credit, loan) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

veuvegirl · 05-23-2008, 05:42 AM

Now I am freaking. We are moving to PA; and I found out that the closing costs are significantly hire than we planned for. Can these be wrapped into the loan?

Moonwalkr · 05-23-2008, 07:11 AM

Did you already put an offer down for a house? Good lenders and motivated sellers can definitely work something out to accommodate you. A month before we put an offer down on a house our lender came up with a rough GFE and it was pretty close to the final HUD.

You definitely want some cash reserve even after downpayment and all the closing costs for all the inevitable things you need after you move in.

veuvegirl · 05-23-2008, 07:15 AM

No; we haven't offered yet. We are going tomorrow to move forward. I am just angry at myself for not realizing there were so many extra costs...

Moonwalkr · 05-23-2008, 07:21 AM

Yeah, we hear about minimum 20% down a lot, but they really should tell people to save 25% to cover everything.

Arcadio · 05-23-2008, 07:25 AM

Ask the seller to contribute to the closing costs. We asked them to pay 3 percent toward closing and they agreed.

veuvegirl · 05-23-2008, 07:29 AM

Good idea; it can't hurt. The area we are looking at doesn't have isn't such a buyer's market, so I think that may not work.

TimtheGuy · 05-23-2008, 07:51 AM

Quote:

Originally Posted by veuvegirl

Good idea; it can't hurt. The area we are looking at doesn't have isn't such a buyer's market, so I think that may not work.

Any logical seller should be willing to pay all of your closing costs. It will just be added to the sales price.

pghquest · 05-23-2008, 05:53 PM

Quote:

Originally Posted by veuvegirl

Good idea; it can't hurt. The area we are looking at doesn't have isn't such a buyer's market, so I think that may not work.

I ALWAYS make the sellers contribute to the closing costs. I ask for 6% sellers concession, and then I put 14% down, meaning I got credit for 20%, avoiding PMI. Last property I purchased, they were asking $130K, I offered $132,500, with $7500 in sellers concession (closing costs etc), and put down $20K.. If I didnt bump up the price, I would have needed $25,000 down instead of $20,000 to save PMI.

veuvegirl · 05-25-2008, 07:51 AM

Thank you for suggesting this! We are negotiating right now; and looks like the sellers are willing to help out with the closing costs. Huge weight off our shoulders.

LaceyEx · 05-25-2008, 11:25 AM

PA is higher in closing costs due to their prop/school tax structure. Rather than the normal 3 mo. escrow you have to put more in escrow as school taxes are collected at one time of year and prop. taxes another. Your LO should have known this.