Financing in Indianapolis>Question Details

Lmags629, Home Buyer in Indiana

I'm looking to buy a home - the two lenders I've spoken with quoted about $2000 in closing costs. Are there lenders with lower closing?

Asked by Lmags629, Indiana Tue Nov 15, 2011


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Peter Knight’s answer
You can compare lenders for closing costs by comparing the "effective APR". The effective APR includes fees such as origination, processing, etc. But rates can vary depending on your credit score, so the effective APR will change. I suggest you do not "shop" more than 2-3 lenders where they actually pull credit. Many buyers are confused between closing costs quoted by their lender and what they will actually need to bring to closing. As others have described, the seller can be asked to cover closing costs. There will also be a prorated tax credit. Your Realtor will be able to explain all this. If you do not have a Realtor, contact me. Peter Knight,, (317) 529-4178.
0 votes Thank Flag Link Wed Nov 16, 2011
2k in closing costs doesn't seem too bad, it just depends what all that is covering. If that is the origination fee only, then yes, it is high. If that is the origination fee, the appraisal fee, the lenders title insurance fee, credit report, etc, then it is fairly typical.

As someone stated, when writing your offer, you can ask for closing cost assistance from the seller if cash out of pocket is a key factor for you. You may end up paying a little more in the asking price, but it would save you the out of pocket expense.

Another thing that lenders can do is "credit you" if you take a slightly higher interest rate. I had a client that we ended up having to do this in order to make the deal go through because the seller didn't have any extra funds to help with closing cost assistance even though they had agreed to it originally. She was able to get a credit for $1,800 from the lender and her monthly payment went up by about $12. To her it was worth it because she really wanted that home and didn't want to have to look for another, but she didn't have enough money to cover the closing costs herself.
0 votes Thank Flag Link Wed Nov 16, 2011
$2k closing costs is just lender's portion, did you consider escrow fees you may incur? If you are going into an agreement, you can always ask the seller to help you with closing costs (or somethings the agent may credit that for you as well).

Depends on how you approach it, but $2k doesn't seem to bad.
0 votes Thank Flag Link Tue Nov 15, 2011
Closing costs are what they are and anyone can quote you lower costs by increasing the rate. People that state "Company ABC" has lower costs, are not telling you the truth, they are just telling you what they have heard and may believe to be true. The truth is that everyone has virtually the same closing costs or very close to it, its' all about the rate you choose and the cost to get that rate. If you want he lowest cost mortgage, find the best loan officer first and they will properly advise you of how to accomplish the rest.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Tue Nov 15, 2011
Stonegate Mortgage Call Ed Dewitt at (317) 973-4137
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0 votes Thank Flag Link Tue Nov 15, 2011
The key is to choose the lender that you like the best and we will ask the seller to cover your closing costs for you. You can give me a call at 317-956-3041 to discuss further.
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0 votes Thank Flag Link Tue Nov 15, 2011
Union Savings had low closing costs on their Conventional Financing. Otherwise give or take that is typical. Please let me know if you need more help.
0 votes Thank Flag Link Tue Nov 15, 2011
I would love to help you find a home and also find you the best mortgage company . You can call me at 317-443-8110
0 votes Thank Flag Link Tue Nov 15, 2011
You can give Chris Minor a call. He's with Stonegate in Fishers (317) 563-1122.
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0 votes Thank Flag Link Tue Nov 15, 2011
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