Home Buying in 93444>Question Details

Mrriso, Home Buyer in Nipomo, CA

How much are closing costs?

Asked by Mrriso, Nipomo, CA Sun Jun 21, 2009

I am buying the house I have been renting for the last 10 years. The house was new when I moved in. The owner owns it outright and will be carrying the contract. We have agreed to $320,000 for the house on a 30 yr fixed rate mortgage @ 5.5%. I will be putting $10,000 in escrow. The closing costs will be deducted from this and the balance will be the down payment. The seller has agreed to pay 1/2 of the closing costs. There will be no appraisal or home inspection. I have lived in this house since it was brand new and feel confident I know the house well enough to buy it as-is. My question is, how much will my closing costs be?

Help the community by answering this question:

Answers

4
you are going to need a Title Company for the Escrow:

go ask them to do a GFE

good luck anf may God bless
0 votes Thank Flag Link Fri Jul 22, 2011
Closing costs are usually estimated as a percentage of the sale price. Escrow companies can provide you with and estimated closing cost. It can vary between 1% to3% depending if it is a bank or private lending financing where costs run from 1% to 2% of total cost which also depends on type of loan and your credit score. If it is owner financing usually there may be attorney fees guiding the close for buyers and sellers if you do not have buyers representation by a R.E. broker but you would avoid the loan costs charged by a lender. It is usually treated as a private loan between 2 parties so your cost would be less than traditional closing cost that includes lender fees at your offered price. But protect yourself in other important areas as I am describing next:
You need to take action As if you were a bank institution lending you the money to a buyer and need to follow their procedures & methods to protect yourself as a homeowner vs. Tenant from hidden structural problems that are not visible or that go unnoticed. Consider all of the additional costs as a homeowner vs tenant. First doing an inspection report will help you determine if the house has settled properly being that you moved in when new and also can point out minor and major repairs needed that can affect your immediate and future financing budget for housing expense such roof repair or replacement. An appraisal is a must as it will tell you how much you should be paying comparing to similar homes in your immediate neighborhood just sold past 3 to 6 months. Appraisers determine value by minus and plus method of what your home lacks or offers more than the comps used to see if $320,000 is a fair amount to pay. Once you sign the loan agreement from the owner you will have to pay that off whenever selling this property. So you do not want to pay for a property that maybe worth less then the loan! Closing costs are usual and customary 50/50 % so not an advantage for the buyer. Remember that added to your monthly housing expense are Taxes, home owner's insurance, Water and sewer bill, and repairs that become your responsibility as a homeowner vs tenant. Just precautionary steps to take and consider other than closing costs.
Best Regards, Tony Taranto, Keller Williams Realty, Paso Robles, Ca. 93446. (949) 637- 7133.
Feel free to call me with any questions. Congratulations on becoming a new homeowner.
0 votes Thank Flag Link Fri Jul 22, 2011
Congratulations on buying the home.

Contact the escrow company that is handling your transaction and ask them to provide you with a "buyer's net sheet." They will need the information that you provided here as well as other information that they will ask you.

Hope this helps and good luck.
0 votes Thank Flag Link Tue Jul 7, 2009
So much depends on the type of loan, whether or not you are paying points to reduce interest rates, reports that you might request, etc. I strongly recommend speaking with a good loan officer that can prequalify you, tell you about the many loan options that are available to you, and provide you with an estimate of closing costs.

How lucky you are to be moving to the Central Coast! I am a native of the San Luis Obispo area. Being a Central Coast native gives me a true appreciation of all that the local lifestyle represents. I bring this enthusiasm to everything I do.

This is the busiest season for the real estate market - people come as tourist and decide that they want to have a second home, retire or just move here permanently.

A home here is a wise investment as our market tends to be more stable than others nationwide. We lack the dependency on large industry or manufacturing so the population and resource remain consistent.

I am a Realtor and would be delighted to assist you. My reputation and future success depends on providing my clients with exceptional service and professionalism. When looking for a partner to find the ideal home or to sell your property, remember my name and call me, knowing that I am here to serve.

Rebecca Larsen
Seawave Real Estate, Inc.
Pismo Beach, CA
(805) 268-3551

Web Reference: http://www.rebeccasccl.com
0 votes Thank Flag Link Tue Jun 30, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer