Your REALTORÂ® should be able to give you a reasonably accurate estimate, depending on the price of the home, the type of loan you use, and the Seller's willingness and ability to help you with those costs. Some loans (FHA and Conventional, for example) REQUIRE you to have a certain amount of cash in the deal. Others limit the amount of seller contribution and contributions from other sources. Your lender will have accurate information for you on those items. They will also know how you can sometimes cover even those requirements with gifts from family, state bond programs, etc. There is a huge variety of loan programs available.
Closing costs include loan origination fees, Appraisal costs, other costs that the Seller is not covering (survey, HOA Documents, etc.) and pre-paid insurance and taxes which lenders often require. VA Loans require that the Seller pay some of those items for you.
So, your best answer is to make sure that your agent KNOWS what they are doing and is giving you the best advice for your situation. Your agent should also know some quality local lenders who really take care of the Buyer's interests, and not just their own. They should help you to look at ALL the alternative ways you could do the deal, and pick the one that fits your situation best. They should also be able to explain in terms you understand exactly why they recommend that you make that choice.
Real Estate is a Team Sport! It takes a qualified Buyer, a savvy Agent, a top-notch Lender, and a competent Escrow Agent to get the purchase closed on time and on terms that suit you. The most important element of that team is the Agent, because they lead the team. Good luck and choose carefully.
Doc Stephens, REALTOR
Keller Williams Realty
Best of luck to you,
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
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Closing costs are in addition to the down payment. An FHA loan will be 3.5% down payment, a Conventional loan can be as low as 5% depending on your credit score. If you have enough for your down payment, you can sometimes find a Seller who is willing to pay some, or all, of your closing costs. Good luck to you in your search for a home. If you need any help, please give me a call or check out my website.
I see them range from as little as 2% to as high as 6%. Any higher than 6%, and it may be wiser to find a different lender.
I make it a pretty good practice of mine to get the seller to pay the majority if not all of the buyer's closing costs. So, with the right buyer's agent, you may not need to worry about the closing costs or pre-paid items at all. :)
Hope that helps!
Jason C Campbell
Realtor / Mortgage Loan Officer
Keller Williams Realty
The Real Estate Procedures Closing Act ( RESPA) requires that lenders and mortgage brokers give buyers a Good Faith Estimate of all loan-related expenses due at closing. However, these estimates do not guarantee actual mortgage closing costs.
Call me with any questions.
That is a great question. Only once you speak to a loan officer about your specific situation and potential terms can you truly know what your closing cost will be. There is no such thing as a one size fits all answer for your question. I am a licensed Sr. Loan Officer in the State of Texas and I would be happy to assist you and answer any other possible questions you may have. We are a national direct lender with exceptional rates but more importantly service second to none. While many companies close loans in todays market on average of 60-90 days we are currently closing loans in about 18-21 days! Feel free to contact me to answer any questions and to discuss financing opportunities you have available to you.
Joshua A. Lerette
Senior Loan Officer
Residential Finance Corporation
800.930.7334 Ext. 1108 â€“ Toll Free
813.402.4637 â€“ Direct Line
727.488.7355 â€“ Cell
888.692.5967 â€“ Fax
Your best bet is is to meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any mortgage that you may quailify for and explain the pros and cons of each. They are required to give you a good faith estimate of estimated costs to close.
PLEASE SEE MY BLOG FOR A FULL LIST OF TIPS AND ADVICE ON GETTING A MORTGAGE