Home Buying in Group 14621>Question Details

Cliff Kitson, Home Buyer in Rochester, NY

How do I estimate closing costs for a home purchase. Is there a formula I can use?

Asked by Cliff Kitson, Rochester, NY Sat Feb 2, 2013

Help the community by answering this question:


Cliff, to break down closing costs simply we need to cover what makes up these costs. at closing you will have to pay.

- 1 year taxes
- down payment (%3.5 for FHA, or %5 for most conventional loans)
- appraisal fees, bank attorney fee, title insurance, attorney fees, inspections, ( I usually budget $2500-$3000) but you will want to speak to your lender to get the exact numbers.

depending on the loan product you can finance a portion of closing costs. (most loan products are between%3- %6 of the purchase price)

Please email or call with any questions. I am never too busy to assist you further.

Phil Kovach

REMAX Custom
(585) 746-3692
1 vote Thank Flag Link Sat Feb 2, 2013
585-865-4100 ext 310.
0 votes Thank Flag Link Sun Feb 3, 2013
First call your loan officer becuase they should be furnishinga "good faith estimate" of what those costs will be. On average they are 3 percent of your mortgage depending on the points you have to pay on your oan.
0 votes Thank Flag Link Sun Feb 3, 2013
Cliff a Quick way is never accurate. Your cost can change depending on your closing date. but a quick idea can get you a general Idea. I am presuming you are a buyer because your cost will differ
quite a bit from seller or buyer. But 4.5% of your sale price than add your annual taxes. tipicly your lender will give you a truth and lending statement but even then figures can change untill your attorney gives you the finnal settelment cost. Hope this helped you . My last suggesstion is to get pre approved from a lender and their figures will be more accurate that the 4.5% theroy.
You can call me or write to me and I will be happy to assest you if you need to
0 votes Thank Flag Link Sun Feb 3, 2013
If purchasing with a mortgage, ask your loan officer for a good faith estimate...
0 votes Thank Flag Link Sat Feb 2, 2013
Most people purchase with a mortgage loan. At closing, the lender will collect about 9% of the property's purchase price in prepaids[ a full year's property taxes and insurance] plus some hefty and unavoidable fees. Therefore on a $100,000 home, the lender will collect approximately $9,000 plus your down payment, for a total due of about $12,500, and this figure doesn't include your own attorney's fee..

Yet there are excellent strategies to slash these closing expenses. I share these with my clients, and I also show them how to save tens of thousands of dollars on mortgage principal and interest.

Call me anytime without obligation at 585.223.4449 for a free home buying guide and more info. Best wishes on the exciting search for your next home or income property!
0 votes Thank Flag Link Sat Feb 2, 2013
It sound like you are trying to go at it yourself. I would recommend you looking to trusted professional who can answer all of your questions for you. Start with an Agent, an attorney and loan officer. Each one will be able to give you sound advice in their area of expertise from home value, taxes, closing costs, inspections, fees, and everything else under the sun in real estate.
Each person's situation is unique based upon how they are trying to find a home. You can try and cut corners to keep down costs but that can come at a price. There are certain things you do not want to short cut when it comes to purchasing a home.
It's great that you are thinking about costs etc, but go directly to a trusted expert who will ask you specific questions and guide you from there.
There is nothing more frustrating to a potential buyer than getting several slightly different answers that don't exactly follow your situation. The reason we can not give you exact information is because there is no exact, it's a guestimate up until closing day. But each agent responding to you is right with their comments.
Hope this has helped and if I can refer you to any professionals let me know

Brad Newton
Certified Buyer Representative
RE/MAX Custom
0 votes Thank Flag Link Sat Feb 2, 2013
I can do it for you right over the phone in about 3 minutes. Please call me @ 585 317-4444 / thx, Reinhardt Brucker -Realtor with Realty USA
0 votes Thank Flag Link Sat Feb 2, 2013
Here is a calculator to play with itemized numbers to get a more precise ballpark for your needs.


And here is one of the easier down to earth explanations.


Hope theses links are simple and informative enough. :). Best of luck.
0 votes Thank Flag Link Sat Feb 2, 2013
Good morning Cliff!!

While there are some calculators or formulas I have seen online, the best method of estimating closing costs would be to speak with your loan officer. He or she will have the best information about your specific situation depending on your loan type, personal circumstances and the particular property you are purchasing. Any other formulas or calculators you see may not be accurate because, as we say with a lot of things, each transaction is different! Have you already been in contact with a mortgage lender?

Alternatively, if you are buying cash, then there are some other considerations which would come in to play and be a bit different than a financed home purchase.

Please let me know if I can help you any further with this question or if I can help you in your home search!

Steve Bintz
0 votes Thank Flag Link Sat Feb 2, 2013
It really depends on the price range you are considering. You can figure you will need 1 year's worth of taxes and insurance upfront (if you are putting less than 20% down), your down payment (currently 2.3% minimum for an FHA loan, 0% down for a VA loan and 5% down for a conventional loan - these are the big 3).

The rest of the expenses are the actual "closing costs" associated with obtaining a loan. They include NYS mortgage tax, bank attorney fees, title insurance. etc. Some of these fees are based on mortgage amount and may differ from lender-to-lender, so it's not a hard/fast rule of thumb.

Lenders do allow sellers to contribute towards your closing costs as well, to help offset the cash needed to close. FHA & VA allow up to 6% seller's concessions and Conventional allows up to 3% seller's concessions.

I would generalize and say roughly $4k-$4500 in a range of $150-$160k loan. If you would like more specifics for your particular price range, don't hesitate to contact me at Rosatihomes@gmail.com or 585-738-1210.

I hope that helps
0 votes Thank Flag Link Sat Feb 2, 2013
Hi Cliff,

When you purchase a home, you will need the down payment (or, if you are paying all in cash, the amount of the purchase price), taxes, and attorney fees - these are the biggest considerations.

Give me a call or email me if you would like additional info.

Gary Wolyn
Licensed Real Estate Agent
Keller Williams Realty
0 votes Thank Flag Link Sat Feb 2, 2013
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