Are these closing costs fair?

[Account Closed]

Hi Everyone,
I found this forum after deciding to get into the rental house business part-time. What a great place to learn about all aspects of the business. Thank you in advance for your feedback, comments and ideas.

I'm in a bit of a pickle. I've made an offer on a SFH, it was accepted, and the option period just finished. The purchase price is $76K and the mortgage is $60.8K. The mortgage broker has now sent me a Loan Analysis Worksheet with a breakdown of the closing costs. I feel that the closing costs are high and I WOULD LIKE YOUR OPINIONS.

My credit score is excellent and have no other debt than my primary residence. I am in Dallas.

Here are the closing costs:

CC related to the Loan:
Origination fee - $608
Processing fee - $375
Underwriting fee - $850
Attorney Doc Prep fee - $125
Administration fee - $275

CC related to Title Charges:
Settlement fee - $350
Closing Agent Delivery fee - $50
Tax Certificate fee - $44
Lender's Title Insurance - $175
Title Policy Endorsements - $250

CC related to Government fees:
Recording fee - $120

CC related to Miscellaneous:
Survey fee - to be determined
Application (appraisal + credit score) fee - $590

Total closing cost is $3,812 or 5% of the purchase price.

Prepaids are separate.

Thanks very much. Appreciate your help.

[Steve Babiak]

Originally posted by Michael Amosson:

...
The rate is 4.6%, which works out to an APR of 5.3%. ...

The difference between rate and APR is an indicator of "how expensive" the loan processing is. The 0.7% difference shows that this is an expensive loan. Find a loan with a lower APR, and you will probably end up with a more reasonable closing cost amount.