Hi David,

I've been a Loan Officer since 1997 and a Realtor since 2001 and I've never seen closing costs that high. In fact, if that is accurate, it would be a section 32 loan which most companies won't do. TO tell you the trith, something is not right there. If you would like, I could take a look at your GFE and explain it all to you and give you my opinion about it.

Cheryl Hutchinson
Realtor / Loan Officer
770-536-3121

I'm a first time home buyer and there's nothing indicating a down payment costs. There's a VA funding fee, harzard insurance premium, taxes & assessment reserves. . . anyway it's "estimated prepaid items/reserves" $3,743 and "total est. settlement charges" of $6,253. Maybe I'm just misreading the GFE by looking at the bottom line because in one spot in says "Est. closing costs: $2,365" but that's just a subtotal.

"The only exception I can see, is if you have extremely high taxes in your area that result in more money needed to be placed in impound to pay these taxes later. "

This isn't a highly taxed area as the propert tax rate is $8.87 per $1,000.

"Your question intimates that you have more than one such estimate - which adds to the intrigue here. Have you shopped this with "name" lenders as well as brokers?"

I had four lenders/brokers and narrowed it down to two with excellent BBB ratings.

"If your down payment is not included in that $12,000 figure or if your tax rate isn't sky high you are being "gouged" in my opinion."

I'm beginning to get that impression. Loan amount listed is about $115K.

Ok, why would closing costs be so high on different GFEs from different companies? I hadn't planned on the closing costs being so high.

Seems high - but you need to consider the possible "add ons" - mortgage insurance, prepaids, any credit related surcharges and other issues.

Your question intimates that you have more than one such estimate - which adds to the intrigue here. Have you shopped this with "name" lenders as well as brokers?

It does seem high though - but there may be a reason for multiple estimates being this high.

Hank

Good Morning David,
All I have to say is WOW that's high for closing costs on such a small loan amount!
Having been on the lending side, I can tell you that while there are some "adjustments" for smaller loan sizes and some loan originators charge more origination fees to cover what they would normally make on a larger loan, this still seems excessive. If your down payment is not included in that $12,000 figure or if your tax rate isn't sky high you are being "gouged" in my opinion.

On a loan that size you really shouldn't have more than $6000 in TOTAL This includes closing costs and pre-paids. The only exception I can see, is if you have extremely high taxes in your area that result in more money needed to be placed in impound to pay these taxes later. If you don't have impounds on your loan- then you most definately are paying way over what you should be...

Hope this helps,
Micki

generally the 3% closing costs is only for the actual costs to close the loan or lender costs, including the appraisal and title work, attorney fees - are you including down payment and prepaid items/escrow amounts?