Updated over 7 years ago on . Most recent reply
Closing Cost Question (am I getting worked over?)
My first property is officially under contract. It's a small 2/1 here in the Upstate of South Carolina. The purchase price was $72k and I agreed to pay closing costs, which I assumed would be $3-4k... Boy was I wrong.... The estimate I just received was for $7,414!!! Here is the breakdown:
A. ORIGINATION CHARGES $1,391
0.48 % of Loan Amount (Points) $276
Doc Prep Fee $200
Processing Fees $495
Underwriting Fees $420
B. SERVICES YOU CANNOT SHOP FOR $731
Appraisal Fee $650
Credit Report $75
Flood Certification $6
C. SERVICES YOU CAN SHOP FOR $1,145
Title - Abstract or Title Search Fee $225
Title - Courier Fee $25
Title - Escrow Fee $450
Title - Lender's Title Insurance $245
Title - Title Commitment Fee $150
Title - Wire Fee $50
D. TOTAL LAON COSTS (A+B+C) $3,267
E. TAXES AND OTHER GOVERNMENT FEES $45
Recording Fees and Other Taxes $45
Transfer Taxes
F. PREPAIDS $1,108
Homeowner's Insurance Premium (12 months) $900
Mortgage Insurance Premium ( months)
Prepaid Interest ($9.47 per day for 22 days @6%) $208
Property Taxes ( months)
G. INITIAL ESCROW PAYMENT AT CLOSING $1,173
Homeowner's Insurance $75.00 per month for 10 mo. $750
Mortgage Insurance per month for mo.
Property Taxes $141.15 per month for 3 mo. $423
H. OTHER $1,965
Administration Fees $500
Home Inspection Fee (optional) $375
Pest Inspection Fee (Termite) $100
Real Estate Agent Commission $840
Title - Owner's Title Insurance (optional) $150
I. TOTAL OTHER COSTS (E+F+G+H) $4,291
J. TOTAL CLOSING COSTS $7,414
Calculating Cash to Close
Total Closing Costs (J) $7,414
Closing Costs Financed (Paid from your Loan Amount) $0
Down Payment/Funds from Borrower $14,400
Deposit -$500
Funds for Borrower $0
Seller Credits $0
Adjustments and Other Credits $0
Estimated Cash to Close $21,314
So that's an out of pocket cost of $21,314 to buy a $72k property??? Does this seem right to you seasoned investors???
Thank you in advance for all your help!!!
Most Popular Reply
I’m with Caleb .. id find a new agent . Looks like Too many hands in the cookie jar