Home Buying in 90047>Question Details

Pskinny, Home Buyer in 90047

How much closing cost for a home in Austin, 78754. Purchase price $127000 with 3.5% down. Fha loan.

Asked by Pskinny, 90047 Tue Jul 28, 2009

Got GFE total closing around $7500. Is that fair? Im first time home buyer. Lender was recommended by my realator?

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Closing costs on an FHA loan can be around 2.5%-4%+. You are at about 6% which may be a bit high unless you are buying down the rate with discount points. However on lower loan amounts, closing costs as a percentage of purchase price tend to be higher.

With an FHA loan the lender can take up to 9 months of property taxes as reserves. I know property taxes are high in Texas so this can be adding to your total dollar figure. This is not technically a cost, as it is property taxes that will be eventually paid out to taxes or refunded to you if you sell or refinance. Also, with FHA the lender will take a reserve of homeowners insurance and mortgage insurance. This again is not a "cost" as it is a reserve. The impounds/reserves taken on FHA/VA and conventional loans with
0 votes Thank Flag Link Tue Jul 28, 2009
No, that doesn't sound fair to me. I suggest you cross qualify with a major bank, try Wells Fargo or Countrywide Home Loans. Just call them up & say "pre-approve me for a loan" don't give them the GFE you already have, you want them to be honest about their fees, rather than them knowing what they have to beat up front.

0 votes Thank Flag Link Tue Jul 28, 2009
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