Closing Costs Seem High...

[Will K]

I am looking at purchasing two 3-unit townhouses as a package deal. Each townhouse is $90,000 each, for a total of $180,000. I am going to get a separate mortgage note for each property.

I talked to a bank the other day, and the loan officer gave me a “good faith” closing cost estimate of $6,673 PER property, for a total of $13,346 for a purchase value of $180,000. This is almost 7.4% of the property value. The breakdown of closing costs PER property is:

Transfer Tax: $1,350
Origination Charges: $1,185
Initial Deposit in Escrow Account: $1,104
Title Services and Lender’s Title Insurance: $939
Hazard: $804
Bank Appraisal Fee: $650
Owner’s Title Insurance: $264
Government Recording Charges: $175
Daily Interest Charges: $117
Tax Service Fee: $75.00
Flood Certification: $8.00

Total Closing Costs (per property): $6,673

Can anyone take a look at this and see if anything looks like a BS charge? For example, what is the hazard fee? And the origination charges? I see other people on here talking about $1,500-$2,000 buyer closing costs and wonder how they are swinging that...