Anyone familiar with loans in Michigan / closing costs?

3 Replies

I just got a quote back for a loan for a SFH in southeast Michigan. At $89k ask, there are $5,500 in closing costs ($1,500 of that is tax prorations) and then $2,100 in prepaids (insurance/taxes). The closing costs seem high, but this is the first estimate I have received back. I plan to get a few other quotes but I have no idea if this is typical.

Processing Fees $495.00

Underwriting Fees $695.00 

Loan Administration $58.00

Fee Discount Points $719.20

Appraisal $515.00

Title - Wire / Courier Fee $85.00

Settlement Fee $550.00

Lender's Title Insurance $450.00

Recording Fees $90.00

Realtor/Broker Service Fee $395.00

Tax Prorations $1,500.00

Total Estimated Closing Costs $5,552.20

That realtor/broker fee is a total rip off. Only some offices charge that and it's dumb. Their "fee" is thr commission. 

These are high and it depends on your lender

Processing Fees $495.00

Underwriting Fees $695.00 

I just had a closing and here were the charges from the lender for them

Processing Fees $225.00

Underwriting Fees $225.00

Origination Fees $300.00

As stated above this is garbage and I would consider a new Realtor

Realtor/Broker Service Fee $395.00

So there is $835 you are over paying but you can't get rid of it unless you switch your lender and agent but based on the fact you have closing costs those actions would probably cost you the deal. I would recommend that course of action on the next house.

Also some lenders are now willing to pay your appraisal fee at closing so you could have gotten that $515.00 fee credited back to you towards closing costs. With that credit you would have a total savings of $1,350.

@Richard Ball . thanks for the feedback. I did get the broker fee taken out of the closing costs. Thank you for the tip about the appraisal fee. I've never financed a house like this before and the devil is clearly in the details. $1,350 would have been a great amount to save!