Rental Property Investor · Queens, NY · Member since 2019 · 94 posts · 27 votes
Hello fellow BP’s, I’ve been pre-approved for $200k loan, but closing costs seem a bit high, does $16,000.00 in closing costs makes sense, the bank officer at Quicken Loans said the closing cost on investment properties are MUCH higher, is he serious, I emphasize on MUCH? Any input would help. Thanks!!!!
@Lorraine Patterson can you get more opinions from different lenders? my closing cost on a $200k property that was not an investment was under $5k so i dont imagine it would be over 3x that for an investment. also i personally hate quicken loans and they tend to be more expensive every time ive tried them.
Hello fellow BP’s, I’ve been pre-approved for $200k loan, but closing costs seem a bit high, does $16,000.00 in closing costs makes sense, the bank officer at Quicken Loans said the closing cost on investment properties are MUCH higher, is he serious, I emphasize on MUCH? Any input would help. Thanks!!!!
I would shop around for better rates and closing fee. Does the closing cost include your DownPayment? What percent is the loan origination fee?
Not sure if you have access to loans from US BANK. Im in the middle of opening a Heloc on one of my investment properties with them and they have $0 closing costs... and even the appraisal is $0 charge regardless even if I decide to cancel the process after appraisal was done. Very competitive rates too.
@Alvin Uy hello Alvin, no it does not include my DP.... total out of pocket would be $66,000 with 15% DP, do not want to give up so much cash for my first investment, going to check out US Bank....thanks!!!
@Lorraine Patterson my most recent estimate from my agent had closing costs at around $8K, and that is in a pricey DC market.
$16K seems high. I have trouble believing that closing costs would be that high even in SF or NY. Maybe I’m wrong though. I would get multiple quotes on closing costs if that’s where your first one came in at.
@Lorraine Patterson I typically see investors bring 20% down, around 2k for closing costs and 3k for prepaid and taxes.. this is for a property that's around 70k.
Hello fellow BP’s, I’ve been pre-approved for $200k loan, but closing costs seem a bit high, does $16,000.00 in closing costs makes sense, the bank officer at Quicken Loans said the closing cost on investment properties are MUCH higher, is he serious, I emphasize on MUCH? Any input would help. Thanks!!!!
Find a local lender who can help. I'd find a great local agent and ask them for a referral. You'll get much better service and likely a better deal on the loan. Quicken is probably more expensive to support their extensive marketing budget. I've closed several loans with Quicken and they are the worst lender I've ever worked with.
@Alvin Uy hello Alvin, no it does not include my DP.... total out of pocket would be $66,000 with 15% DP, do not want to give up so much cash for my first investment, going to check out US Bank....thanks!!!
Wha??! $66k?? 15% of 200k is $30k. Would need to see a complete break-out of what they are charging you for. How much is their origination fee? Make sure they are not tacking on some redundant stuff that you don't need.
I'm in the Midwest and just locked a 30yr @4.75%, 100k duplex with 25% down. Closing costs ~$3600, which is a bit higher than a few other lenders that quoted me rates above 5%.
@Lorraine Patterson if you get the preapproval within a week of eachother I dont think it disturbs your credit score to much. I dont think an inquiry for matching rates is going to make or break your deal.