Closing costs in Texas!

[Veda B.]

Hey Texas BP!

Just got pre-approved by my first lender and I have a question related to our closing costs.

I'm planning on purchasing a duplex for around 280,000 with $10,000 down using an FHA loan. After accounting for APR costs, non-apr costs, points, UFMIP, and prepaids our total cash to close is $19,828!

Is this normal for Texas or am I being taken for a ride?

[Rod Hanks]

Sounds about right when you subtract the 10k down payment that leaves $9828. Back out the pre-paids, taxes, title insurance, and property insurance they have accounted for and the balance will be the junk fees. Junk fees would be lender points, application fee, escrow fee, doc fee, courier fee, etc. Those junks fees are negotiable and you definitely shouldn't over pay. The biggest junk fees you need to watch out for are lender points, escrow fee and attorney fee. Call several title companies and get a schedule of their fees and you will see they can vary widely.

Good Luck and Congrats!