Updated about 8 years ago on . Most recent reply
buying costs excessive?
I'm calculating costs on a potential deal and got a loan estimate from a conventional lender. It seems the buying costs are way excessive to me. What do you think?
loan amount: 80000
Origination charges:
3pct points: 2400
processing fee: 850
underwriting: 300
Services you cannot shop for:
appraisal: 510
credit montoring service: 7
credit report: 15
flood determination: 11
flood life of loan: 5
life of loan tax service: 55
tax certification fee: 18
services you can shop for:
title search: 225
lenders title policy: 531
closing fee: 550
title survey: 400
title examination fee: 150
taxes and prepaids:
recording fee: 207
transfer taxes: 1107
Home owner's insurance: 1740
property tax: 257
Optional:
title owner's policy: 140
total: 10059
So 10000 bucks on an 80000 loan? wth?
Seems excessive to me. what can I cut from this by shopping around? Are these costs what other investors are seeing?
This is a 20 pct down loan btw. So I'd be paying 100k for the property.
I have everything as far as financials too. Monthly income, excellent credit, plenty of cash reserves. Work history.
I could go pull my last hud1 statement from a couple years ago in the same county but that was for a personal residence and much higher loan amount.
Most Popular Reply
Those numbers seem way off. I just walked out of a closing two hours ago.
| Description | Debit | Credit |
| Purchase price | 89500.00 | |
| Deposit (Earnest Money) | 1000.00 | |
| Loan Amount | 85900.00 | |
| *Other property as collateral | ||
| Prorated 2018 Taxes | 559.66 | |
| Title Charges | ||
| Closing Protection Letter | 12.50 | |
| Comp Endorsement | 12.50 | |
| EPA Endorsement | 12.50 | |
| Lenders Title Ins | 487.50 | |
| Owners Title Ins | 182.75 | |
| Recording of Deed | 16.00 | |
| Escrow Closing Fee | 50.00 | |
| Termite Inspection | 85.60 | |
| Totals | 86759.35 | 87459.66 |
| Check to me at Closing | 700.31 |
This was a bit of a special one since I was using collateral, but when I’ve put 20% down I was seeing roughly the same results, with the exception of needing to cut them a check for the 20%.
I would be looking for a new bank and title company.