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Denise, Home Buyer in Forest Hills, Queens,...

How do you calculate closing costs on a coop?

Asked by Denise, Forest Hills, Queens, NY Mon Jan 25, 2010

Does it vary between coops, condos and houses? How can I estimate what I'll have to pay?

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Hi Denise. Closing costs are a combination of all fees associated with the purchase of a Coop. They would vary by lender fees, Coop application fees and your Attorney fees. Here's a rough breakdown:

FOR THE PURCHASER
Mortgage Closing Costs
Buyer’s Attorney:
Consult your attorney ( $1000-$1800 approx)
Bank Fees:
$350–$750
Application Fee:
$350
Processing Fee:
$330
Appraisal Fee:
$300–$1,500 (depending on sales price)
Credit Report Fee:
$10.10 single/$15.20 joint
May also be a flat fee of $50-$75.
Bank Attorney:
$650–$750
Lien Search:
$250–$350
UCC-1 Filing Fee:
$100
Mansion Tax:
1% of entire purchase price where price is $1,000,000
or more, if applicable.
ADDITIONAL REAL ESTATE EXPENSES
Miscellaneous Co-op Charges
Vary by building ($500-$1200 approx).
Recognition Agreement Fee:
$200+
Maintenance Adjustment:
Pro-rated for the month
of closing
Short Term Interest:
Equal to interest for balance of month in which you close.

I hope is is of some help to you. If you require any additional information or if you are not currentlly working with a Broker, I would like to offer my services to you. Be aware that you don't pay me, the seller does.

Regards,

Joseph C. Hastings
Cell: 917-579-1502
Prudential Douglas Elliman real Estate
1 vote Thank Flag Link Wed Jan 27, 2010
First, unlike condos and houses, co-ops are not considered real estate for purposes of calculating closing costs. Because a co-op is not real estate, there is no mortgage recording tax which is one of the highest cost. In addition, title insurance, although available, is not required for co-op purchases.

The majority of closing cost in a co-op purchase are determined by the lender. Generally speaking, most lenders charge an application/appraisal fee, lien search, and a bank attorney fee. Some also charge a processing fee, or an underwriting fee. The loan officer of the lender wioth whom you are interested in doing business should be able to give you a rough estimate of the bank fees.

In addition, there are co-op fees as well. Co-ops usually charge an application/credit search fee when applying to the Board and the co-op transfer agent charges a fee for reviewing certain loan documents if financing is applicable. These fees vary from Board to Board.

A ballpark estimate of all charges would be $3,500 to $4,000. Please feel free to call my office for a no-obligation consultation or see my website.
1 vote Thank Flag Link Tue Jan 26, 2010
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