Financing in 55429>Question Details

Paula, Home Buyer in Minneapolis, MN

what is the closing cost on $185k property with FHA loan?

Asked by Paula, Minneapolis, MN Fri Apr 27, 2012

Will be closing on a property soon, and the still unsure how much closing cost is. Seller is willing to pay $5500 towards closing costs? From experience, does anybody know if this is sufficient for FHA loan? How much extra will I have to pay out of pocket, since I'm only putting down 3.5%?

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The formula would be Closing Costs + Prepaids (escrow account for taxes and insurance) + pro-rated taxes if applicable per your purchase agreement - seller paid closing costs. Take that number and add it to your 3.5% down and that should be around the number. As for what the closing costs would be. . . take your pick by using the web reference below. Let me know if you need help. I'm right across the river.

Charles Dailey
612-234-7283
1 vote Thank Flag Link Fri Apr 27, 2012
I guess so.. i didn't notice the date until after i posted..
0 votes Thank Flag Link Tue Jun 11, 2013
Asked 4/27/12...I hope they closed by now!
0 votes Thank Flag Link Tue Jun 11, 2013
Hello Paula,
Your lender should give you a closing cost worksheet and a GFE. If they have not done this already they are not in compliance and I would find another lender, one who can help you through this process.
As the others have mentioned closing costs can range if you are buying down points or many other variables... It also depends on what date you are closing as the lender will require you to escrow for property taxes and home owner's insurance (which are NOT considered closing costs but will be part of your cash to close requirement).

I would be happy to assit you through the mortgage loan process to make sure you understand all the details. I have been in this business for over 25 years!

Respectfully,


Shawn Sullivan
Mortgage Loan Originator
NMLS #350140

Direct: 612-747-8200
FAX: 612-573-6604

My Website: http://Www.ShawnSullivan.Biz
Shawn@ShawnSullivan.Biz

WJ Bradley Mortgage Capital LLC
NMLS ID 3233
Edina, MN
0 votes Thank Flag Link Tue Jun 11, 2013
HA! That's funny (and yet in another way not very funny at all). Donald is totally correct here.
0 votes Thank Flag Link Sun Apr 29, 2012
Hi Paula,
I am wondering why your Realtor and your title company aren't providing this information to you. You should have am estimated closing cost worksheet. Financing addenda usually are worded "up to $5500." Make sure you have a strategy to use as much of seller paids as possible.
0 votes Thank Flag Link Sat Apr 28, 2012
You should be very close to what you will need but I would try to scrape additonal $2000 just in case your lender wants to see recerves..
0 votes Thank Flag Link Fri Apr 27, 2012
Without knowing your specifics, generally closing costs come in at around 3 percent of purchase price. But it could be higher if you purchased points to buy down the loan. Usually on the sellers closing costs form it says seller will pay UP to $5,500 or UP to 3 percent of closing costs - depending on the agent that wrote the document. So if there is any money left over that is unspent by closing, that money will revert back to the seller. So make sure you spend every dime of your closing costs.

Ask your agent to do a buyers closing cost worksheet.This is going to be approximate as the HUD1 is the final determining document for closing costs. You will also find out a day or two prior to closing what your costs will be when you receive the HUD1 statement from your lender.
0 votes Thank Flag Link Fri Apr 27, 2012
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