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Okay, here's the deal: My father passed away and I decided to buy my sister out. We reached an agreement of $320,000.00. Got a broker and am approved for an FHA loan for $328,143.00 Just fine except now the closing costs will be almost $25,000.00. Does this seem right?
I'd say a 1/4 point for $820 is a deal, but $8,500 in broker fees is not. Are you pre-paying PMI for ther life of the loan? Shouldn't it be less than $100/mon.?
Yeah... what the heck is that $8500 "Broker Loan Fee" doing there?
Also, you can finance that Upfront MIP instead of including it in your closing costs if you don't have the cash.
My total closing costs on a $335,000 property (minus prepaids) were only $3700.00 last week...
I settled for 5% with no points though.... still, you need to investigate why you are being charged that "broker loan fee" of $8500..... it may seem like he/she is doing you a favor by only charging $820 for that 1/4 point off... but he's definitely taking advantage of you by charging the $8500.
I always tell my buyers that closing costs are approximately 4-5% of the loan amount. That means it should be between $13K-$17K. That "Broker Loan Fee" is outrageous and I have never heard of such a thing. If I were you, I would definitely shop around and get compare Good Faith Estimates from other lenders.
Thank you for the responses. I thought it was a little high! After paying those fees and my half of the attorney, I'll be almost 35K out of pocket to complete this! I'm to the point where I'm ready to sell....except this market now. Sleepless nights, I'll tell ya!
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