First Property - Please Offer thoughts etc - Loan Closing Costs Seem High too
Hi Folks,
Am a relatively new BP member and have been reading quite abit. Currently in contract to buy a duplex in sunnyside Houston tx for 138K (don't know if any of you have duplexes in that area - there are quite afew that I have seen just driving around) it's a slightly blighted area but I think I will find tenants with no issue. Property was a foreclosure and am buying it as is from Fannie Mae - Inspection already done and it seems ok with the exception that the furnace and ac on one of the units does not work. There are several duplexes like mine in the area and they rent for between 1100 and 1250 a unit. Quite abit of section 8 tenants as well (from my research) So am looking at putting 20% down on the loan and the property should generate about 2400 a month in rents.
Am using a broker for my loan and it seems that the fees are high to me. my credit score right now is 705 and am putting 20% down - review the fees below and let know what you think - are these reasonable - note: - i opted out of escrow and will pay property taxes at the end of the year myself and will pay home owners insurance myself. The property is about 3500 square feet total
Good Faith Estimate from loan broker:
Processing fee 495
underwriting fee 750
attorney fee 300
escrow waiver fee 276
closing coordination - 390
appraisal fee 525
credit report fee 30
tax service 107
flood certification 7
closing/escrow fee 350
delivery/messenger fee 30
electronic download 30
bank service 10
e-recording fee 12
survey 378
Mortgage recording charge 167
daily interest fee 293
Seller (fannie mae) is paying for both lender and owner title insurance and they are contributing 800 towards closing costs
Note: Am not "escrowing anything" so i will get insurance on my own as well as pay taxes at the end of the year on my own
Does the above seem reasonable (closing costs)
Also, how does this property look like for a first property. (its relatively new - built in 2007)
Thanks in advance for any feedback