Financing in Simpsonville>Question Details

Raidernation, Other/Just Looking in Simpsonville, KY

How much can I expect to pay in closing-cost?

Asked by Raidernation, Simpsonville, KY Mon Sep 28, 2009

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Thanks for giving more info. On purchase deals expect about 3-4% for closing costs. Even better is if you can get the seller to pay for the closing cost through FHA (6% max), you can roll the taxes and insurance into the seller paid fees. You'll want to make sure that you work with someone you feel you can trust. Local company is better - sometimes, as you have the ability to go over to their office and see a Manager instead of depending on the phone. Time zone is also important. If you have a 10 am closing and your loan officer's in bed, it may not do you any good (of course, hopefully the LO will schedule you when he/she is awake). BTW, don't close on a Friday at 5pm. Stay away from closing on the last day of the month. FHA allows for a minimum down payment of 3.5%. For every $1000 extra down payment, you'll save about $6. I'd rather you keep your money for after closing expenses. The Mortgage Insurance premium on FHA is about the same as a conventional loan with 10% down. If you are going to put 20% down, go conventional (seller can pay up to 6% in closing costs excluding escrow - taxes/insurance). Bryce seems to be a good person, after all he's using this website.
1 vote Thank Flag Link Wed Sep 30, 2009
Raidernation-

Here would be my breakdown...
1% origination fee of the loan amount
450 for apraisal
500 for processing
550 for underwriting
425 for escrow
425 for title
If you have your taxes and insurance with your payment you will need to factor in escrow impounds. These are not closing costs, but funds required to be collected at closing to set up your escrow account.

Why in the world is your rate so high? With that kind of down payment, you should be in the 5% range, maybe even lower...

Go Seahawks!
1 vote Thank Flag Link Tue Sep 29, 2009
It depends how difficult you are...haha..just kidding. Mr. Johnson has a point. It's kind of like going to an attorney and saying you want presentation and need to know the fees. Need a little more info. Closing costs are dependent on the loan amount, the rate you are seeking, the type of loan (refinance vs purchase), among other things.
1 vote Thank Flag Link Tue Sep 29, 2009
Mr raider nation, you have to provide some additional information before I can even come close to telling you what is reasonable for closing costs. Are you paying points or origination fees? Are you getting a par interest rate? Do you have your taxes and insurance with your payment or separate?
1 vote Thank Flag Link Mon Sep 28, 2009
Be aware that the lender charges interest, in addition to closing fees and charges. Here are some general rules:
The lender, not VA, sets the interest rate, discount points, and closing costs. These rates may vary from lender to lender
Closing costs such as the VA appraisal, credit report, state and local taxes, and recording fees may be paid by the purchaser, the seller, or shared
The seller can pay for some closing costs. (Under our rules, a seller’s “concessions” can’t exceed 4% of the loan. But only some types of costs fall under this 4% rule. Examples are: payment of pre-paid closing costs, VA funding fee, payoff of credit balances or judgments for the Veteran, and funds for temporary “buydowns.” Payment of discount points is not subject to the 4% limit.)
You are not allowed to pay for the termite report, unless the loan is a refinance. That fee is usually paid by the seller.
No commissions, brokerage fees, or "buyer broker" fees may be charged to the Veteran buyer
0 votes Thank Flag Link Sat Aug 10, 2013
Johnson,
Thanks for you insight man, I really appreciate the info. That gives me a great ballpark figure to expect. As far as the interest rate, to be honest, I was merely speculating on what I've seen the norm percent to be. Having the taxes and insurance combined with the payment, is another anomaly I didn't know existed. I guess I have a lot to learn.

Thanks again.
silver n black!
0 votes Thank Flag Link Wed Sep 30, 2009
Thanks fellas, I'll be looking to purchase a condo in Simpsonville, KY around 115,000$. I'll put down 10-20%. Looking to purchase. Interest rate in the ball park 5.5-6.0%, through a military federal savings bank. With an avg. credit score. As for the "points" I wouldn't know enough about them to elaborate.

Appreciate everyone's insight.
GO RAIDERS.
0 votes Thank Flag Link Tue Sep 29, 2009
go to http://www.mortgagenetwork.net and click on the Good Faith Estimator bitton.
Web Reference: http://www.yunkerhomes.com
0 votes Thank Flag Link Mon Sep 28, 2009
go to http://www.mortgagenetwork.net and click on the Good Faith Estimator bitton.
Web Reference: http://www.yunkerhomes.com
0 votes Thank Flag Link Mon Sep 28, 2009
go to http://www.mortgagenetwork.net and click on the Good Faith Estimator bitton.
Web Reference: http://www.yunkerhomes.com
0 votes Thank Flag Link Mon Sep 28, 2009
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