Closing on a FHA Loan
I am buying my first home which is a duplex in Short Sell for 72,000 dollars I am putting down the 3.5% for the FHA requirments....I am going to live in one side and rent the other side which will almost cover the complete morgage, it all sounds great but now I am faced with the closing cost which is estimated to be around 7000 dollars.
I thought this was a little high on a loan for 69000 after my 3.5% down...does this amount for closing sound average or is it a little high? Any suggestions will be great.
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Looking at your list of costs above, it appears that less than half of the $7K is closing costs. The rest are escrow and pre-paid insurance costs.
Of the half that are closing costs, legally you should have received a Good Faith Estimate (GFE) of every one of these costs when you submitted your loan application and the contract on the property. In fact, recent changes to the law now ensure that the GFE you received is very, very close to the fees you ultimately pay. So, this information shouldn't have been too much of a surprise.
Even so, some of the fees seem very high. It appears you're paying nearly 2 points to the broker/lender, and the escrow company/attorney is charging $750, which is crazy.
Next time, shop around and read the GFE before you move forward with your broker/lender...