The lender will have there fees wich will vary
Title and Escrow are based onn the purchsae price- and no lender will close without title insurance and on a purchase there are 2 policies (1 for the lender and 1 for the home owner- this clears title)
Then the title company has miscellaneous fees- recording fees, doc prep, notary, and some other fees are capped and changed this is the bulk-
You will also need to pay a years premium upfront for Homeowners Insurance-
This is the bulk in a nutshell- always ask your agent for a estimate- it is never going the bottom line until you are getting ready to close and everyone has hard numbers in-
So Good Luck I hope this helped
Closing costs are the fees associated with closing the transaction. The true cost of buying a home would be the agreed purchase price of the home PLUS all of the closing costs connected with the transaction. A rough estimate of closing costs would be from 2% to 4% of the purchase price.
As a buyer you would prefer the seller to pay as much of the closing costs as possible. But when you write an offer you need to specify who pays each cost transaction fee. Fees related to your loan are not even part of the ordinary purchase agreement and would need to be incorproated as a seller credit.
Depending on market conditions this can be more or less likely. Under the current market conditions, because home inventories are low, sellers are pushing more costs to the buyer.
Hope this helps.
It will not matter to the client if the Lo is getting paid a higher spit/ rebate as long as they are not charging the client a higher fee on the back end to get it.
Very few home buyers or Realtors know anything about YSP, nor do they know is doesnt get disclosed if you work for a bank or direct lender although I believe it is called a different fee.
If the broker gets paid better because they perform better or have a better "Pull Through Rate " with the lender they have earned that. But dont charge the cient on the back end and extra point - 3 points when they arnt aware of it like so often happens.
Honestly, the GFE can say what ever it wants. but we all know too well smooth talking sales people will say it something that its not and the poor person who doesnt understand is left in the cold.
The only way extra disclosures are going to matter is if the sales people are honest about what they are disclosing and not try to cover things up.
My husband has been in this industry for over 20 years and its shocking what Ive learned. His fees are extremely competative compared to what Ive witnessed when I audit my clients loans because they dont know the questions to ask or weather the fee is required or negotiable...
Im all for people earning a living and getting paid for hard work, but when it comes to over charging and not being honest putting your commission before the client I have a very hard time with that..
Realtor - Legal Assistant
I find that many people ask questions here instead of speaking with their Realtor/Lender.
You have good answers on closing costs. They can be negotiated for the most part.
The big question to ask about fees are what you broker/ loan officer charges. You want to be very direct with them. Some people are so concerned with "no points no fees" that they dont look at what is being charged on the "back end". That is referred to as a Yield Spread Premium. For example, lets say you have a decent credit score, your loan officer tells you you dont qualify for premium rates you have 7.95. They could very well be getting paid a hugh rebate from the lender!!!
I do loan mods and audit/review my clients HUD1. I am amazed to see that some clients have paid up to $16k in closing costs. You need to not be afraid to ask questions. Some people, hopefully most are trying to build a lifetime referral busiess. However others will charge as much as they can on each transaction.
Also some other fees may be negotiable. Such as junk fees, if they are already chargind a desk fee, then a processing fee, then a lenders fee. etc. See what Im getting at. the can end up charging a lot of unnecesary closing costs. So know what goes where and what can be reduced!!!
Best of Luck
Realtor - Legal Assistant
Your lender or Realtor can help you figure out an estimate for your area. Check also http://www.hud.gov for homebuyer guides.
Teri Andrews-Murch, RealtorÂ®, SRESÂ®
DRE CA Lic # 01734030
Lyon Real Estate
1900 Grass Valley Highway, Suite 100
Auburn, Ca, 95603
Direct Ph: 530-798-0215
First and foremost - some closing costs can be negotiated and paid for by the seller.
There are closing costs related to your loan. There are also closing cost related to escrow, which include title insurance and simple fees (notary - etc).
Great links that explain closing fees.
Recognize that each county will have different "customary" standards on whether or buyer or seller pays for specific closing costs. Touch base with a local real estate professional for specific standards for the county.
What a lender charges for lending their money up front.
pro-rated real estate taxes
pro-rates hoa dues
Any other fees that are mentioned in the offer documents or by the lender. Figure about 3% of the purchase price for a total of these fees.
As to who pays for them, it's completely negotiable. It's not uncommon in the Sacramento market to ask the seller to reimburse closing costs to buyer at close of escrow. Especially in light of the fact that the REO sellers insist on using their pre-designated title company (even though its no longer legal).
I hope this helps.
Keller Williams Realty
Your closing costs will basically boil down to the following: lender and/or broker costs like application, processing, underwriting and points, if any. You will also have to pay for the appraisal. There will also be title fees, which as mentioned above, vary by state, and include searches, title insurance, recording fees, settlement fees, and assorted other title related items.
In addition, you will have what are considered pre-paid items. These are things like per diem interest to the end of the month you close, taxes, both adjusting to the seller, covering payments due within the first 60 days, and money that is held by the bank to set up your initial escrow account. You will also have to purchase a homeowner's insurance policy for the first year, and put money into escrow for your cushion towards year 2. If there is a need for flood insurance, the same goes for that. As far as any type of mortgage insurance, whether PMI or MIP, I have not seen this escrowed from my experience, but hypothetically someone could ask you to escrow 2 months of that.
If you are taking out an FHA loan, there is an upfront MIP fee, or Mortgage Insurance Premium, but that is generally added to your loan amount rather than you having to pay it at closing,
John & Sarena Villaescusa
Keller Williams Realty