I'm under contract for my first rental and shopping a loan. Particulars are conventional loan, 20% down, great credit. Rate offered was 4.625%
The first quote was $3,300 in lender closing costs detail below.
- Processing /Admin $592
- Underwriting $350
- GA fee $10
- Appraisal $470
- Tax service $66
- Lenders coverage $220
- Title services fee $500
- Owners Coverage $645
- Recording $86
- State transfer tax $360
None of the above includes interest or funding escrow accounts. Does that sound pretty reasonable? Any of it worth negotiating?
Hi Joe, those numbers look pretty decent as far as I can tell, but what's your loan amount and what kind of property are you buying?
Also, if you're willing to come in with 25% down, you might be able to get the lender to cover more of your costs at the same rate.
These fees seem all in line with the national averages that we see every day. Only your first two are lender/bank fees. Those are the only ones you can negotiate with your lender.
All others are third party costs. Title (lenders and owners coverage) services are third party costs that could be negotiated but rarely do they budge from their published rates. If they do, you may save $100 or $200.
I question if you can really get an 80% loan to value on rental properties. But if you can that's great.
Thank you both for your feedback. I "locked" with another lender with similar costs but a lower rate.
@ Mark - Single Family 3/2 at $146k net.
@ Robert - I got the "official" GFE listing 20% down as an investor so I think it's legit. Glad as that extra 5% would be my repair budget!
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