Financing in 11211>Question Details

Nickjflint, Home Buyer in Brooklyn, NY

Hello, is there a simple calculation for closing costs when buying a property?

Asked by Nickjflint, Brooklyn, NY Thu Apr 25, 2013

Just needing a basic equation to apply when evaluating properties. Thanks!

0 votes Share Flag Financing in 11211

Help the community by answering this question:


The rule of thumb is about 6% (not 4% simply because you're in Brooklyn and the mortgage tax is higher). But there is a more efficient way to know what the closing costs are. If you haven't yet been pre-approved, you need to meet with a Loan Officer and allow him/her to review your credit, income and asset documentation. This will allow them to figure out exactly what you qualify for.

Once they determine what price you approve for and what your loan amount would be, ask them to give you a Good Faith Estimate (GFI) with closing costs based on the higher loan amount you qualify for. This way you have the higher number (somewhat of the worst case scenario).

If you're in need of a dependable Loan Officer, I'm always available to meet at our Brooklyn offices. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(631) 659-2011 Office
(516) 918-5383 Fax
1 vote Thank Flag Link Thu Apr 25, 2013
Thanks Javier, is it 6% of the LOAN amount or the purchase Amount?
Many thanks,
Flag Thu Apr 25, 2013
Your loan officer can provide a good faith estimate; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Thu Apr 25, 2013
To get a rough estimate, use 6% of the mortgage amount. But this is not an accurate number. The best thing to do is to speak with a mortgage lender and get more accurate numbers.

Feel free to contact me with any mortgage related questions you might have.

Best of Luck to you!

Rocco Guercio
Sr. Mortgage Specialist
Equity Loans, LLC
0 votes Thank Flag Link Thu Apr 25, 2013
Yes. Go to my website
0 votes Thank Flag Link Thu Apr 25, 2013
Dear Nickjflint:

Usually closing costs on a typical deal are about 5% of the loan amount. An FHA type mortgage would be up to 6%.

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
0 votes Thank Flag Link Thu Apr 25, 2013
Nick a general calculation is between 4% and 6% of the purchase price of the home. Things that will determine which end of the range would be bank fees, attorney fees . Ask your lender for an estimate on their closing costs should be of some help.
0 votes Thank Flag Link Thu Apr 25, 2013
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