Does this seems reasonable?

Question

Duplex $110,000

25% down

South Texas

Admin fee $680

Tax service $80

Origination fee $825

Processing fee $500

Underwriting fee $500

Appraisal,cedit report, doc preparation $1036

Escrow, survey, guaranty fee, Title insurance $1,977

Prepaids, initial closing payment $3,128

Total closing $8,724

Is this reasonable? Seems a little high.

Chris Coleman · Answer

Yes, that seems high on a $110K price tag.  However, you're in South Texas, so its hard to say without knowing the Taxes and Insurance details.  Your Escrowed and Prepaids could simply be very high.

But it looks like there are a lot of individual fees.  A few I do not recognize/understand, maybe just terminology...

What is "Admin Fee" and "Tax Service"?  Is that the Recording and Transfer of Taxes?

What is "doc preparation"?  Is that simply the Application Fee?  Or is that attorney review (in Texas)?

Why do you have a "guarantee fee"? Is there a Guarantor for this purchase?

Jose Delgado · Answer

Thanks a lot! I called the bank and they seemed they are gonna work with me.

Jerel Ehlert · Answer

Doc prep should be the attorney's fee for drafting.  Origination goes to the lender's funding source if they don't table fund themselves.  Tax service goes to the taxing authority for tax certification.  Processing, underwriting, admin all sound like the same. An appraisal is $300-400, credit is $35-65. Third party escrow fee is typically charged to the lender, not borrower, unless they mean title company escrow ($300-500 per seller/buyer).  Guaranty is when you have a guarantor.  Title insurance is set by the state insurance department (about 1.3% of the policy, both buyer's and lender's policies).  Prepaids include your daily interest between close and end of month, insurance premium, and possibly taxes.

If you take out the prepaids, your closing costs run about 5% of the loan, so not too bad.  I'd push back on the processing, underwriting, and admin fees (should be only 1 fee, not 3).

Frank Geiger · Answer

Lol you have an admin fee, processing fee, and doc preparation fee. Which all in my mind are the same thing. It is a little high...

Does this seems reasonable?

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