Give me some advice on these closing costs. Thanks!

4 Replies

Hello,

I would you all to look over these closing costs (all personal and bank info is redacted).

The purchase price is 400,000 and I am putting 16k down. Closing costs are coming to 30k. That seems high to me but maybe its normal.

In the docs it shows a seller credit of 10,000. The seller will not be giving me a credit of 10,000 so I have to come up with the 30k myself.

Let me know what you guys think of the amount of the closing costs for $400,000 property.

Thanks!

FHA funding fee can't be avoided. Yes, I can tell it's FHA even though you blacked that part out.

Don't buy points on an FHA loan, FHA loans are just interim financing until you have the equity to drop the mortgage insurance, unlikely you will hit the break-even point on points/fees. Close with no points/fees, rate be damned. If you want a better rate find a local independent mortgage broker ("we're a direct lender" = banker, not broker). If you have to go with this lender due to timing issues, the advice stands, and do a FHA streamline refinance in 270 days.

@Nicholas Zeiler everything seems kosher, except for the 1 point fee (0.944%) and $1598 in lender fees.

As @Chris Mason said, don't pay points on FHA. Unless your credit score is really bad, that combination of a 4.5% rate plus 1 point is wayyyyyy too high.

Those lender fees are high, most lenders are closer to $1000-$1200 total.

Appraisal might be fine, every state is different and depends if this is a 1-unit or 2-4 unit property.

If you need a rockstar loan officer in OH that won't gauge you, shoot me a PM and I can connect you.

Best of luck!

@Nicholas Zeiler   Closing costs (excluding the financed upfront mortgage insurance) are $14,844.  The rest is your down payment of $16,000.  So yes total funds needed to close may be about $30,000, but the down payment is not typically considered a "closing cost."