Home Buying in Philadelphia>Question Details

edgt215, Home Buyer in Philadelphia, PA

buying a house in philly at 19152 zip worth 159k 3.5% down payment with a closing costs of $11k? why is it so high? any advice?

Asked by edgt215, Philadelphia, PA Wed Jun 19, 2013

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Feel free to contact me regarding a quote for this property. Closing Costs can add up very quickly, so I can provide you with a quote that offers a "Lender Credit" to help reduce those costs even more. I am guessing here, but we can potentially lower your closing costs by a few thousand dollars if you opted for a higher rate.

Give me a call if you would like to chat and see what I can offer (412.551.8970 - John Cushma). There are many ways to structure/approach a deal so that you can get into the home for as little as possible. I am a hands on Loan Officer that gets joy out of saving people lots of money.

I am free day/night, weekdays/weekends.

Thanks again!

0 votes Thank Flag Link Thu Jun 20, 2013
It does seem high. Without specifics I would assume there are some discount points thrown in there. Feel free to contact me if you want some recommendations for lenders so you can comparison shop. I also have a listing in 19151 that's a STEAL for $137,500. Let me know if I can help.

Gary Lamach II
Realtor I Prudential Fox & Roach, Realtors I Haverford Station
610.446.1470 I 43 Haverford Station Road I Haverford, PA 19041
0 votes Thank Flag Link Thu Jun 20, 2013
It sounds like maybe a FHA loan requiring lender escrows, inspections, appraisal, doc fees, title ins, etc... Your agent is allowed to negotiate some of these fees of even ask the seller to pitch in. On more thing Philadelphia has twice the transfer tax than any other county.
0 votes Thank Flag Link Wed Jun 19, 2013
Your closing costs can add up quick when buying in Philadelphia. That $11k may unclude the 1.75% UFMIP that comes with every FHA loan (about $2700), will include the 2% transfer tax you are responsible for ($3180), and depending on how much the lender discloses to you a years worth of taxes and insurance for your escrows and reimbursment to the seller. That still does not include lender fee, title/settlement, and recording. Lastly depending on the rate you are being offered, you may or may not be getting a lender credit to offset these costs. If you would like a second opinion, please feel free to contact me. I am local to you and willing to sit down and go through everything

Joe Cafiero
Guaranteed Rate
0 votes Thank Flag Link Wed Jun 19, 2013
It probably includes escrows. It should also include items paid before closing like inspections, appraisal and insurance.
0 votes Thank Flag Link Wed Jun 19, 2013
Sounds high. I would do one of two things. Speak to the Loan Officer and go over the fees in the Good Fairh Estimate. It's very likely that they are over-estimating fees, which is what most lenders do these days. The 2nd thing you can do is get a 2nd Good Faith Estimate from a different lender and compare the #s.

I usually go over all the #s with my clients when I deliver the Good Faith Estimate along with the rest of te disclosures that need to be signed and explain it all to them. I'm always available to help if you want that 2nd opinion. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(631) 659-2011 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Wed Jun 19, 2013
note rate 3.750%
apr 5.376%

origination $1533
mip $2683
title fees $1855
transfer tax $3000
all that equal to $9071 wow!!!
plus the rest are all small stuff fees.

these sounded right? or something's fishy going on?
I thought It was high too...just getting advices thats all. we didn't close or deposited any deals yet.
still on house hunting.

thank you all...I appreciate it.
0 votes Thank Flag Link Wed Jun 19, 2013
I'd check with your loan officer as to why. Did you opt for a lower interest rate that would add extra points/costs to the loan. Is your down payment part of the amount you've quoted? If it's not, then they are way too high (unless something special is going on that we are not aware of). If so, might be inline.
0 votes Thank Flag Link Wed Jun 19, 2013
something about paying the whole amount up front for the whole year. either tax or insurance. not sure let me double check.
Flag Wed Jun 19, 2013
What are the closing costs? $11k sounds too high. Most closing costs come from the lender so they should explain what they are and how much.

1% loan origination
0-2% discount points

Those are the normal points, more might be the lender getting too much or you buying down the loan too much.
0 votes Thank Flag Link Wed Jun 19, 2013
Philadelphia has a 2% transfer tax, so that is $3180.00, plus your 3.5% down $5565.00. Review your lenders charges....are there points? There are 2 things to consider when selecting a lender.....interest rate and closing costs.
0 votes Thank Flag Link Wed Jun 19, 2013
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