Looking for help analyzing closing costs- first Investment property!

[Austin McDonald]

Hi, I am newly under contract for my first investment property, a duplex we plan to live in and rent out.

I just got the first estimation for my loan/closing costs, looking for any assistance on analyzing if these costs make sense. I'm a newbie so not trying to be taken advantage of.

I'm financing 171k and using a 5% conventional loan while also taking 5% DP assistance through OHFA.

I do notice I got charged a Loan Origination fee twice, each for $855, I'm feeling that shouldn't be the case. I was told by my lender that these costs should come down more as some of the title fees are conservative estimates at this point. Looking for any insight as I originally expected only to be total out of pocket under 5k, thanks.

[Dan M.]

Hello Austin,

I would definitely ask the lender about the 2 line items for loan origination, though 855+855 = 1710 which is exactly 1 point of 171k. Why they broke it up twice is beyond me. I assume you have a 1 point closing fee. All the other junk fees your stuck with, there is no way around it. That's what it costs to get your money and the lender gets 900 dollars to fill out a template, another 900 to fill out an excel sheet, and pockets the spread on the appraisal. They have to make money somehow too. At this point either find another lender with lower fees or just deal with the costs of closing. They are escrowing taxes so you have to put that upfront as well which is sometimes standard. Everyone talks about the BRRRR noone talks about the extra closing costs.