Financing in San Antonio>Question Details

Heidi, Home Buyer in San Antonio, TX

How do you figure how much you will need for closing costs?

Asked by Heidi, San Antonio, TX Mon Oct 17, 2011

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There are many different factors that can increase the closing cost or reduce the cost. A new build or short sale will take more than 60 days to close, so you will want to FLOAT your interest rate, negotiate the high cost lock or lock the rate when you approach 60 days before closing. The cost of some loan programs or buying down your interest rate will influence closing cost to rise. Down payment is a separate cost from closing cost, ask about grants for 1st time home buyers to cover a large percentage of the down payment. You may have the desire to shop around to find a lender with low closing cost, but understand the limitations regarding credit inquires. In respect to credit inquires, you have soft or hard credit pulls, meaning it depend's on the inquiry you have will give you a certain amount of days to count the inquiry as 1 credit inquiry. The good faith estimate is the guide to understanding all the lending terms and closing cost you should know before making a purchase offer. Once you have received a credit pre-approval, verify you have the cost to close the transaction or negotiate the price knowing getting closing cost will reduce out of pocket expense! Stay informed about the changes of how credit reports, credit scores can change and know the truth about the large percentage of American's that have errors entered daily on credit reports. Every credit report would greatly benefit from having credit monitoring, especially when starting down the journey of the home buying process!! Also educate yourself about the 5(FIVE) area's of identity theft and be proactive in improving your credit report daily!Don't hesitate another day without being protected and being unfamiliar with the Fair Credit Reporting Act of 1971.
0 votes Thank Flag Link Thu Oct 20, 2011
Good question, Heidi,

Your REALTOR® 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.

Best regards,

Doc Stephens, REALTOR
Keller Williams Realty
0 votes Thank Flag Link Mon Oct 17, 2011
Your first step should be to find a mortgage professional to go over these costs with you. There are many different types of loan programs with varying closing costs. It is also allowable to roll in closing costs so once yo have the financing worked out your Realtor can help you structure an offer on a home to minimize the closing costs or at least roll them in if that is what you want to do.

Best of luck to you,

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
0 votes Thank Flag Link Mon Oct 17, 2011
The figure varies greatly depending on the type of loan. Do you need closing cost assistance? There are some great programs available in San Antonio and surrounding areas. Closing cost assistance can also be negotiated in the terms of the contract.

Would you like a lender referral?

Call me.
Jana Halverson
0 votes Thank Flag Link Mon Oct 17, 2011
Some of the costs will be associated with your loan. The type of loan and the mortgage company you select will determine what those fees will be, but they must provide a good faith estimate. That is why it is very important that you meet with a loan officer in advance so that you will have a good idea of how much money you will need. Some of the closing costs are used to set up your escrow account so that there will be enough money available when it is time to pay property taxes and insurance. For example, at closing, you will pay 14 months of premium for your homeowners insurance (1 year paid in advance plus 2 extra months for your escrow).
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.
Mavis Brown
0 votes Thank Flag Link Mon Oct 17, 2011
The BEST way to find out what your closing costs will be is to get a Good Faith Estimate from your Lender based on the price range you would like to buy a home in.

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

Web Reference:
0 votes Thank Flag Link Mon Oct 17, 2011
Closing costs refer to the expenses associated with buying property. These settlement costs are fees paid by purchasers upon receipt of their loan from their banks and generally range between 2-7% of the total loan value. While a substantial portion of these costs is paid on the day of closing, some of these costs are almost always paid on an earlier date.

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.
0 votes Thank Flag Link Mon Oct 17, 2011
Hello Heidi,

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 – Toll Free
813.402.4637 – Direct Line
727.488.7355 – Cell
888.692.5967 – Fax
0 votes Thank Flag Link Mon Oct 17, 2011
Average closing costs for a Buyer in San Antonio is 4.5% of the purchase price plus your down payment.
0 votes Thank Flag Link Mon Oct 17, 2011
Heidi this is an amount that a loan officer can give. I can tell you teh average closing costs are 3% but differ depending on what type of loan you choose, some have no closing costs as teh seller can pay up to 6% of them.

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.…

Web Reference:
0 votes Thank Flag Link Mon Oct 17, 2011
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