Nervous about Closing Cost please Advice on a VA Loan

4 Replies

Please take a look at these closing cost Please advise me as much as possible, my gut tells me i should be paying $4700 in closing cost

Ok, Im assuming this property is in Michigan so I cant speak to what title charges are like in that area, but I can tell you other than the title insurance and settlement fee, there don't appear to be any of the normal title charges listed.  There's no endorsements for things such as the ALTA 9.1, no survey (although not always required, especially if there is endorsement to cover it), no county recording fee, no courier fee, no wire fee, no tax stamps, no doc prep, no Patriot Act, theres a few more Im not thinking of right now.  Everything else appears to be there, whether they are accurate (such as prepaids) or not I have no clue, but at least he has something there so Im just taking the assumption he is being honest. 

For example, he has 3 months of taxes for prepaids totaling $500, which means taxes are $167/month, if that is correct then that should be about right.  15 days of prepaid interest would be right if you closed on the 15th of the month, but consider that an open ended charge as it could go up or down depending on what day of the month you actually closed. 

I do not see the VA funding fee (VA's version of upfront MIP) so I don't know if VA is not requiring it (unlikely) or if he just didn't put it in there, so I would ask about that.

Everything else looks to be at least accounted for, but just based on the lack of a complete list of title charges, I would say you're at least a few hundred dollars short.  It could be that he just doesn't have the charges from the title company yet to input them.  If you already bought the house and the contract has a title company that is to be used, make sure the loan officer gets a prehud of their charges and updates his breakdown as this looks incomplete to me. 

@Tereal Wilsonn That amount seems reasonable. I assume you are buying in Detroit with that outrageous insurance premium and high property tax amount.

WOW @James Zettelmeyer , sir im completely unaware of what alta 9.1 is, but the VA funding fee is waived in my case because im considered to be a disabled veteran, james thank you for responding to this thread

@Richard Ball my actual insurance cost would be about 1500 a year, im not sure if its because im a first time home owner, and the property tax if 2k a year which is cheap i think, and im buy this property is in Oak Park, Michigan

The Alta 9.1 is an endorsement to the standard title policy that covers a couple things.  But mainly, at least here in Cleveland, the endorsement can be added in place of doing a site survey as it will basically cover if there are any encroachments found somewhere down the road that a survey would have otherwise found.  Some lenders will allow to just do either the survey or add the endorsement, some will require both.  Just up to the lender.