Financing in Smithtown>Question Details

nirjhargarg, Home Buyer in 11787

Apart from the 3.5% down-payment in FHA loan, what other out-of-pocket costs should be kept aside?

Asked by nirjhargarg, 11787 Thu Dec 20, 2012

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In addition to your down payment, you'll also need money towards part or all of your closing costs. How much? That depends on who you use for your financing and how much (if any) seller concession you'll get. This dollar amount can be reduced by what we call a lender credit, which is money you'll receive from us towards your closing costs.

I suggest you meet face-to-face with a Loan Officer and go over the possible scenarios so that you have a real good idea of how much cash you'll need and if its necessary, how much seller concession you'll need. These are very important details to know before you begin looking for a house. I'm always available if you need a good Loan Officer to work with. Good luck!

Javier Meneses
NMLS #23130
Senior Loan Officer
Sterling National Bank
jmeneses@snb.com
(516) 606-9648
1 vote Thank Flag Link Thu Dec 20, 2012
Hi Nirjhargarg,

Out of pocket costs will generally be any home inspections costs ($200 to $350), home insurance ($600 to $1200 depending on the value of the home), appraisal fee (around $475).
The closing costs are generally around 6% of the total cost of the home, but your lender will let you know if those can be incorporated into the loan or not, and how much you will need to bring to escrow, before closing.
Once you close, remember the utility deposits (generally $100 per utility).

It is always a good idea to look at the HUD-1 form that is provided by the lender and/or escrow, as this form will tell you how much money you will need to bring to the table, upon closing.

Douglas Lagos
Tel. 310-463-8088
http://douglaslagos.com
Coldwell Banker Residential - Brentwood
11999 San Vicente Blvd, #300
Los Angeles, CA 90049
0 votes Thank Flag Link Thu Dec 20, 2012
For an accurate and personalized picture of costs, ask your loan officer and or attorney for a good faith estimate....
0 votes Thank Flag Link Thu Dec 20, 2012
Hello nirjhargarg!
Generally I tell my clients to reserve 6 percent of the house cost as their closing costs. You would be wise to consult a mortgage representative who can give you a complete breakdown of exactly what you need to spend and what your monthly spend will be on the house. Feel free to call rich Murphy from Wells Fargo 6317862908 and I am sure he will answer all your questions and more. Good luck on your sale if you have any further questions feel free to contact me 6313523210
0 votes Thank Flag Link Thu Dec 20, 2012
Depending on the price of the home, you should budget to spend anywhere from $10,000 to $18,000. Out of pocket costs include but are not limited to:

Inspection
Attorney fee
Appraisal for mortgage company
Home Owner's insurance prepaid for one year
Additional Closing Costs which includes bank fees, title company fees, prepaid real estate taxes and utilities reimbursement.

It's always recommended to budget towards the higher end of anticipated closing costs. It's much better to spend less than anticipated than to receive a higher amount than budgeted for.
0 votes Thank Flag Link Thu Dec 20, 2012
The purchase price of the home, real estate tax amount, square footage, and the specific lender you are using can all factor into the amount of closing costs you are required to pay.
Flag Thu Dec 20, 2012
I have dealt with several FHA closings this year and most of the amounts have varied, all dependent on the lender they chose. Appraisal cost, prepaid taxes and insurance and mortgage title insurance are just a few of the expected costs. Want a better answer? Get a Good Faith estimate from your lender/s.
http://www.HomesInRockport.com
0 votes Thank Flag Link Thu Dec 20, 2012
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