First, let me correct the statement regarding closing costs paid by the seller concessions. Seller concessions come directly from the seller's funds and are not included in your mortgage in any way...unless you increase your purchase price offer to cover those same concessions before the first contract is written.
I think 2.5-5% is a fair range for closing in most parts of the country, and yes, in Willingboro too. Closing costs can vary from month to month due to local taxes and their respective due dates.
TIMIOS.com is a national closing firm online that gives a comprehensive closing cost estimate based on your numbers fast and free online. Remember, each closing agent (attorney, title, closing) can charge some of their own fees too, so they can vary from company to company. I have used TIMIOS for out of state closings and their services are ACES!
Best wishes and happy house hunting! Jim, American Bank, 703 615 4675.
Thanks for the clarification of my statement.
I have found, here in NJ, that the seller concessions are usually tacked onto the purchase price so the sellers can gross what they intended to gross in the first place. I have done numerous FHA loans on both sides, and the sellers usually aren't willing to cut their proceeds.
Also, here in NJ, the closing costs are a bit higher for the buyers than 2.5%, probably closer to the 5% high end you mentioned obviously depending on the purchase price.
Typically the closing costs to the buyer include: attorney fees, title search and title insurance, recording fees for deed and mortgage, homeowners insurance (1 year pre-paid), home inspection fees (paid prior to closing), adjustments back to seller for pre-paid property taxes/water/sewer, escrow money (for mortgage/taxes/insurance etc), mortgage application fees and miscellaneous charges, interest to the end of the month. Your mortgage person should give you an initial GFE (Good Faith Estimate) of most of the charges to pay, prior to your actually closing on the house so there are no surprises.
If you are asking about seller concessions, HUD limits the concession to up to 6% of the purchase price.
However, typically the concession is rolled into the purchase price so if you wanted to offer $200K and ask for 4% in closing costs, your offer would now be $208K, and the seller would gross $200,000 at closing. Bear in mind that you will also be putting your downpayment based on purchase price so at the minimum 3.5% required by FHA, that increases your down payment from $7000 to $7280 AND increases the mortgage amount too from $193,000 to $200,720.
Speak to a qualified and authorized FHA mortgage broker for more accurate details.