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Tom Burdo, Home Buyer in Pittsburgh, PA

Dr Horton's Harmony closing cost

Asked by Tom Burdo, Pittsburgh, PA Mon Nov 11, 2013

I think I'm close to buy a new TH at Dr Horton's Harmony. But it is said their closing cost could be up to 2% of the sale price, which sounds very high. The salesman seems unwilling to provide a sample breakdown of the closing cost by claiming only financial people know the details. So I am concerned if there would be some hidden surprising items on the bill after signing the contract. Can any one give some insights? Thanks!

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Answers

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The salesman should be able to provide you with a quick estimate. However, 2% of the purchase price is a good estimate, and in general includes the following fees (per Title company):

1. Prepaid Costs -
14 months of insurance
2 months of property taxes
per diem loan interest for pro-rated days of incomplete months.

2. Fixed Closing Costs -
Origination Fee
Lender's Title Policy
Recording Fee
Processing Fee
Tax Service
Doc Prep
Underwriting
Flood Cert.
Appraisal
Credit Report
Endorsement
Courier Fee
Loan Tie-In Fee
Notary Fee
City Transfer Tax (Applies only for Mountain View, Palo Alto, San Jose)
Prorated Property Taxes (based on close of escrow date)

In my opinion it is always best to be represented by a licensed realtor who is knowledgeable and has your best interests in mind, in a purchase transaction with a builder or resale. However, do not let this one feature of the transaction dissuade you from purchasing your new home. Talk to your lender for a specific estimate. Ask him/her to fill in the amount of the costs based on your purchase price, down payment and interest rate, listed above. Best of luck to you.

Blanca Estela Esquivel
0 votes Thank Flag Link Wed Nov 13, 2013
Usually builders will pass on all closing cost to the Buyer. Here are some of the fees you could expect to pay.

Title
Escrow
Appraisal
Lender Fees
County Transfer Tax
Your leder will have certain up front recurring fees for you to pay;
Prepaid Interest for a month
Property Tax could be 6 to 10 months
Home Owners Insurance
HOA Fees
Possible Reserves set aside in your savings.

Are you using DR Hortons preferred lender or your own?

A rough estimate for you on a $650,000 purchase with 20% down.
Fixed closing cost $7,300
Prepaid $4,000

You can call a Title Company and Your lender to get a better grasp of your actual cost.

You will need to know what your lender is charging. Plus the day you close will affect your prepaid property taxes and amount of interest.
0 votes Thank Flag Link Mon Nov 11, 2013
It is difficult to know what your exact closing costs will be without knowing details about your specific situation. You should discuss your situation with your Realtor as it can be anywhere from $1K to 2% of the sale price.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Mon Nov 11, 2013
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