Home Buying in 46220>Question Details

Peggy Jones, Home Seller in Indianapolis, IN

What All do you pay for in "closing cost" and how much approximately would a typically closing cost run.????

Asked by Peggy Jones, Indianapolis, IN Mon Apr 29, 2013

I have closed a couple houses recently amd the closing cost was about 500.00 now anther house they are saying close to 5,000????

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Answers

10
As already mentioned several times, closing costs consist of taxes, fees that the title company charges, and some mortgage companies also have some fees they give to the borrower. There are also other things tha may be added in, such as prepaid interest (you pay a portion of the interest up front and "buy" a lower interest rate. The cost is added into the closing costs).

When you are looking for a loan, the important thing to understand is that some companies will get you with their closing costs. In other words, certain lenders will advertise super low rates but in reality they are making up the difference in their closing costs.

A good tool to look at is your Good Faith Estimate. This document is part of a package that all lenders are required to send to potential clients, after they have filled out a basic mortgage application. The GFE will have a close estimate to what the final closing costs (cash-to-close) would consist of, and where they are all coming from. So that piece of paper would tell you exactly what you are paying for.

My company, PrimeLending, does not attempt to make any additonal profit off of our closing costs. We only charge for some of the fees that we were required to pay for (credit reporting fee, flood certification fee), as well as other unavoidable costs like taxes, prepaid insurance, etc. We understand that it is better to keep the required cash-to-close low, and we end up getting more business for it.

If you have any more questions, or would like to inquire about a mortgage, please feel free to contact me any time!

Cody Broshar, Loan Originator
(317) 989-5304
cbroshar@primelending.com
50 East 91st St, Suite 300
Indianapolis, IN 46240
0 votes Thank Flag Link Fri Jan 10, 2014
There are a plethora of things that go in to what one's "closing costs" are. This term has varied definitions which adds to confusion. From the clients perspective, what they generally mean is "what am I going to need to pay for out of pocket", so that is how I answer the question.

Title work, Closing, Appraisal, State/Local fees and recording, origination, processing, underwriting, credit report, fraud detection services, flood cert., etc.

Many programs require homeowners insurance paid for the next 12 mos (if you escrow your taxes and insurance) and if you're building, you'll likely need 12 mos taxes too.

If you see less in closing costs, generally speaking they've given you a lender credit which means basically you have a slightly higher rate and payment to cover the costs. Some programs offer lower payments but higher closing costs, it is a trade off. It is important to find a loan advisor with access to ALL loan programs available and advise you based on your goals/needs.
0 votes Thank Flag Link Tue Nov 12, 2013
Your closing costs differ depending on a several factors including, of course, if you're the buyer or the seller. In Oregon, the seller typically pays for title insurance and for half of the title company's "escrow fees." If you're a buyer, your closing costs will depend largely on your lender's requirements. By the way, your Realtor can help you! Many closing costs can be negotiated within the structure of the deal. What does that mean? It means that your Realtor might be able to negotiate some of those fees being paid by the seller, or visa-versa. It all depends on circumstances, your market and how your deal is structured.

Talk to your local Realtor. They are the best resource for helping you through the process.
0 votes Thank Flag Link Mon May 6, 2013
Your closing costs really depends on the amount of your loan, type of loan (FHA, Conventional, etc), and what fees your mortgage lender and title company (closing company) charge. On an FHA loan, lenders usually estimate 6% for down payment and closing costs (i.e 3.5% down payment and 2.5% towards closing costs). If you find a home you like, you can usually have your lender estimate your "closing costs" for that particular home.
0 votes Thank Flag Link Mon Apr 29, 2013
Buyer and Seller pay different items in a closing and it is mostly base on the purchase price. If you will email me at RSmiley@CallCarpenter.com with the purchase price I will send an itemized list of the charges.
R/Ron
0 votes Thank Flag Link Mon Apr 29, 2013
Mostly lender and title company fees. Cost will depend on the type of loan.

Contact me directly if you need to.

Thanks,
Tiff Atkinson
317-612-4545
tatkinson@callcarpenter.com
0 votes Thank Flag Link Mon Apr 29, 2013
Peggy
Generally closing costs include title insurance, prepaid interest, documentation prep, discount points, closing fees and more. It is not unusual to see 3% requested for these items. On a $150k house, I usually write $2500 or so n for closing costs if I represent the buyer. http://Www.homesaleindy.com
0 votes Thank Flag Link Mon Apr 29, 2013
Closing cost will include the fee charged by the lender to process the loan, the title fee for the buyer. Closing cost will very depending on the type of loan. You can ask the seller to pay some or all of the closing cost. Feel free to contact me a call to discuss this further.

Tamara Allen
Carpenter Realtors
317-625-1956
tallen@callcarpenter.com
0 votes Thank Flag Link Mon Apr 29, 2013
It really depends on home values and Title companies. I have a really good title company I use I could put you in contact with to answer whatever specific answers you have. email me any soldbyavery@gmail.com
Web Reference: http://www.soldbyavery.com
0 votes Thank Flag Link Mon Apr 29, 2013
Typical closing costs in today's market will range between 1000 and 3000

However closing costs can and will vary based on the lender you select , if the sale is a cash or mortgage, if a mortgage the type of mortgage loan and amount of down payment and even if the property is a home or condominium can impact costs.

Feel free to check out http://cityhomesandlifestyle.com/closing-costs-what-are-they… to learn more about the different potential closing costs as well as what you can do to lower closing costs.

Good Luck!
0 votes Thank Flag Link Mon Apr 29, 2013
There are a plethora of things that go in to what one's "closing costs" are. This term has varied definitions which adds to confusion. From the clients perspective, what they generally mean is "what am I going to need to pay for out of pocket", so that is how I answer the question.

Title work, Closing, Appraisal, State/Local fees and recording, origination, processing, underwriting, credit report, fraud detection services, flood cert., etc.

Many programs require homeowners insurance paid for the next 12 mos (if you escrow your taxes and insurance) and if you're building, you'll likely need 12 mos taxes too.

If you see less in closing costs, generally speaking they've given you a lender credit which means basically you have a slightly higher rate and payment to cover the costs. Some programs offer lower payments but higher closing costs, it is a trade off. It is important to find a loan advisor with access to ALL loan programs available and advise you based on your goals/needs.
Flag Tue Nov 12, 2013
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