Home Buying in Salem>Question Details

Ian Jones, Home Buyer in Salem, VA

How much are closing costs, on a $130k house?

Asked by Ian Jones, Salem, VA Sat Oct 17, 2009

I'm curious to know how much closing costs are on a $130k, house. Is there any way of calculating this?
I know there has to be a title search, and inspections, and then there is the closing company which actually does the closing.
Can anyone explain what's covered in closing costs and how much I might be looking at paying?

Help the community by answering this question:

Answers

3
It depends on the type of loan you are using. Keep in mind that FHA guidelines are changing soon so those fees will be increasing. I just ratified a contract for a buyer at $130 exactly and her costs (including inspection fees, home warranty and normal closing costs, prepaids, etc, are about $5500 or so. That includes appraisal and FHA/VHDA fees, etc., . A lot depends on what rate you want and how much your home owners, flood insurance, etcs., costs. Until you know these numbers, it's hard to pin point an amount. What I normally do is send a sample listing to the lender with the taxes, flood zone info , association dues (if any) and so on. The lender will give an estimate for us to work off of. Remember that, once you have an estimate and providing that most other factors are the same, your purchase will cost you about $5 per $1,000 in regards to the payment. People wil often tell you that closing costs and prepaids are about 3% but that'sbased on a $250k purchase. Some fees remain the same no matter what your purchase price (attorney, warranty, title fees, etc) so the % of this total will be higher on a $130 than a $250. Keep in mind also that there are limits to how much in closing costs you can receive from the seller. If you can get your max and ask that the seller's cover a set amount, I'd include inspection fees, warranties, etc., so if you have left over money, you can use it towards these items. Good luck! Get a good agent in your area to help you out. Most are connected with good lenders that want to do a good job for everyone since positive referrals keep us in business.
0 votes Thank Flag Link Wed Mar 13, 2013
I would go to your lender and ask them for a Good Faith Estimate which will give your a break down of all costs involved in closing on a property-everything from property taxes to recording fees. Typically, a Good Faith Estimate is within a couple of hundred dollars. A complete "guesstimate" would be $6500-$8000.
0 votes Thank Flag Link Tue Mar 12, 2013
A good rule of thumb to calculate estimate of closing costs is use 6% of the sales price. So for a 130K property the estimated closing costs will be $7800.

Other fees included are your bank fees and if in your area you have transfer tax.

Depending if you plan on escrowing your taxes, you will have pre-paids to pay at closing. Pre-paids are monies collected at closing for your taxes and insurance. They are required to have money available for when taxes and insurance are due.

Hope this helps. Good luck.
0 votes Thank Flag Link Sat Oct 17, 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