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Old 02-16-2010, 09:56 AM
 
Location: PA
12 posts, read 16,014 times
Reputation: 13

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Hi guys,

We are 3 days away from closing on a new construction townhouse in PA, priced at $133K and sold for $133K.
Seller ( builder ) paid 6% Closing Cost.
Buyer (us ) paid also 6% Closing Cost.
We had to use their lender, title company to get their 6%, otherwise we would have to pay about $16-18K of closing cost.

Question:
Do you see a deal here ?
How much % on average do you pay for closing in PA ?
Can we negotiate this at the closing table (use scare tactic maybe )

Thanks.
Dana
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Old 02-16-2010, 10:25 AM
 
Location: Plano, Texas
1,676 posts, read 6,540,596 times
Reputation: 688
Quote:
Originally Posted by SalvatoreCourt10 View Post
Hi guys,

We are 3 days away from closing on a new construction townhouse in PA, priced at $133K and sold for $133K.
Seller ( builder ) paid 6% Closing Cost.
Buyer (us ) paid also 6% Closing Cost.
We had to use their lender, title company to get their 6%, otherwise we would have to pay about $16-18K of closing cost.

Question:
Do you see a deal here ?
How much % on average do you pay for closing in PA ?
Can we negotiate this at the closing table (use scare tactic maybe )

Thanks.
Dana

The reason they are forcing you to use their lender is they will make back the money they are giving you toward closing costs on the profit from doing the loan. I would suggest you demand that they give you the 6% and allow you to use whatever lender you want. You will get a better interest rate that way.
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Old 02-16-2010, 11:02 AM
 
Location: PA
12 posts, read 16,014 times
Reputation: 13
Quote:
Originally Posted by VictorBurek View Post
The reason they are forcing you to use their lender is they will make back the money they are giving you toward closing costs on the profit from doing the loan. I would suggest you demand that they give you the 6% and allow you to use whatever lender you want. You will get a better interest rate that way.
Too late, settlement in 3 days ! I know there's a reason for them to lure buyers into buying with their 6 % for closing. Our rate is 4.5% which isn't bad.
Is there anything we can do at the closing table to get any money back ?
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Old 02-16-2010, 12:45 PM
 
Location: South Jersey
322 posts, read 488,797 times
Reputation: 259
Quote:
Originally Posted by SalvatoreCourt10 View Post
Too late, settlement in 3 days ! I know there's a reason for them to lure buyers into buying with their 6 % for closing. Our rate is 4.5% which isn't bad.
Is there anything we can do at the closing table to get any money back ?

I'm not intending to sound rude, but with settlement in 3 days you may have wanted to put some thought into this prior to now don't you think? The position you're in now is that if you want to sign your mortgage in 3 days, you're kind of stuck. I write loans in PA and $16k-$18k in closing costs for a $133k mortgage is unreal, we don't hit that number in Jersey and our property taxes are close to triple yours.

Your best bet to try and get yourself some savings is to get a copy of the HUD-1a ASAP and nickel and dime the broker to death. Just going by what you've said, and acknowledging that I have not seen your contract, it sounds to me that you're being gouged.

Start burning up the phone now if you want your house.
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Old 02-16-2010, 10:46 PM
 
Location: Jacksonville, FL (Mandarin)
2,435 posts, read 5,406,877 times
Reputation: 1587
That 4.5% rate looks real good, but the truth of things will be on the HUD Settlement Statement. Does that "$16-18k" include a downpayment? It must because that's a really high number for typical closing costs. Here in FL, I usually see about 3-3.5% closing costs for the buyer.
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Old 02-17-2010, 02:40 PM
 
372 posts, read 1,063,530 times
Reputation: 258
I wonder if the builder gave them 16-18K in upgrades if they used there lender, ect and that is why it would cost more money. NO way closing costs should be anywhere near that amount of money on a $133K house.
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