Home Buying in 94587>Question Details

Monozmono, Home Buyer in Union City, CA

what is the average closing cost all paid by buyer on a 360k loan in northern California? Thank you

Asked by Monozmono, Union City, CA Tue Sep 13, 2011

Hello, finally after months of agony, I got the final approval from BofA. My lender is giving me an estimate of over 14k in closing cost. Does it cost that much to buy a home in CA? please advise, thank you

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Michael Koenig’s answer
it seems BofA is especially difficult to work with when you're dealing with their call center.

In my experience, working with a local loan officer; where you can walk into the branch and speak face-to-face with the agent, is leaps and bounds above the rest.

Don't fall for those teaser low interest rates, only to fall victim to voice-mail hell and changed loan terms towards the end of the transaction.
1 vote Thank Flag Link Mon Dec 17, 2012
True that Ron, some people just answer questions to answer questions, not realizing when people asked the question.
2 votes Thank Flag Link Mon Dec 17, 2012
I'm glad I don't do that, don't do that, don't do that.
Flag Mon Dec 17, 2012
15 months ago!!!!
I hope they got a house by now!!!!
0 votes Thank Flag Link Mon Dec 17, 2012
I think a number of us here would share your sentiments about BofA ...
0 votes Thank Flag Link Mon Dec 17, 2012
We got our loan from B OF A and I would not recomment them. They are so hard to get a hold of and they have horrible customoer service. They are not willing to help their customers...even those in good standing...esp those in good standing.
0 votes Thank Flag Link Mon Dec 17, 2012
Sounds high to me, our closing costs would be approx. 7k but it depend on loan programs. Give me a call and I can go over options with you to contribute to the closing costs within the loan. If you don't have the money for down payment or closing costs, I offer CHF Access with a minimum 580 fico score to qualify for only half percent down payment and can contribute towards closing costs. I can furnish a GFE if you would like and go over other options of loan programs. I only need to ask a few dozen questions to offer some options for you. I need more information to be able to advise. How much are you putting down? What is your fico score? How much do you have or want to contribute to the purchase? I can get you into the purchase with a lot less out of pocket...

CHF Access half percent down flyer, pdf http://tinyurl.com/9ewk9nq

CHF Access income limits http://tinyurl.com/8lzf8he

http://www.Under640FicoScoreLoans.com
http://www.FrankandSheryl.com

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Broker – Loan Officer
DRE# 01440252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Sat Oct 20, 2012
Keep in mind that for an FHA loan, some of the closing costs are actually factored into the loan and are financed. However, ALL the costs have to be shown on the estimated closing costs worksheet - the new method of reporting projected closing costs is VERY confusing for FHA loans – make sure you ask your lender what your ACTUAL OUT OF POCKET closing costs will be. I’m guessing it will be quite different.
0 votes Thank Flag Link Sun Sep 18, 2011
Even if this is a FHA Loan this sounds high. If you give us a breakdown of your fees we will be able to give you better advice.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Tue Sep 13, 2011
Congratulations for your loan approval. A quick calculation for closing costs is 3% of loan amount. Your lender
should give you a good faith estimate. You can negotiate with the seller to pay for your closing costs.
0 votes Thank Flag Link Tue Sep 13, 2011
Your Closing Costs include RECURRING and NON-RECURRING expenses:

One of the thing that have not been mentioned, is Property Taxes:
Property Taxes are collected by the Title Company, in advance of them being due, same as when you're in the house. The amount that the Title Company collects is based on the old taxes that were levied on the previous owner and that Selling Price, and as per a schedule based on two six month increments.
The amount collected varies from month to month, depending on the month that your Escrow closes.
If your Escrow is closing in September, they will collect 4 months taxes.

Now, lets guess that the previous owner bought the place for $750 and his tax rate was 1.25%; he was paying $9375 per year or $781.25 per month. Which means that you are paying 4X781= $3125 in Taxes.
That comes close to the discrepancy in the monies.

Understand that the Title Company has no discretion in this matter; they are told what to charge and cannot vary.

This is what I believe, and I may be wrong, so double check me:
When you buy a house, you will normally get a SUPPLIMENTAL TAX bill in a month or three. If your taxes have gone up, you will be given a bill for the difference. If your taxes went down, you will be given a credit.
Also, a few weeks after the Escrow closes, you will be sent a check from the Title Company for excess monies that they collected. This is automatic.

If there is one thing that you can hang your hat on, it's that the Title Company is pretty reliable.

If you go in to your Title Company, you can verify everything I've told you.

Good luck and may God bless
0 votes Thank Flag Link Tue Sep 13, 2011
That does sound high. However, it's a bit of a loaded question as there are a NUMBER of variables that come into play as Scott Godzyk mentioned. All the fee's should be specifically spelled out and itemized on a Good Faith Estimate. Your statement indicates you've been in the process of getting a loan for several months; if so, your loan agent should have been able to give a good estimate long ago, so there shouldn't be too much of a surprise. If there is, that could be a warning sign.

Even though the amount seems high, the fees cold be completely justified and verifiable. However, it may be possible that 'junk' fees have been inserted as well. Without knowing your contract details or having a copy of your GFE, all we can do is speculate here in this forum.

Bottom line: Ask your loan officer/RE agent to review and explain the fee's to you.

Either way, Congratulations on your home purchase! Great way to take advantage of the current market! ;)
0 votes Thank Flag Link Tue Sep 13, 2011
It seems a bit on the high side - but you would need to provide a complete breakdown of your Good Faith Estimate (GFE) as well as details on your own situation in order for you to get accurate feedback. I believe there may be an additional transfer tax in Union City which could make them slightly higher than in other parts of California.

What are the "adjusted origination charges" on your GFE?
What are the "title services & lender's title services" amount on your GFE?
What are all of the other #'s on your GFE say?
Did you get a GFE yet?
What type of loan are you getting?
What are the terms of the loan?
0 votes Thank Flag Link Tue Sep 13, 2011
The average is 3% so that comes to $10,800. The variable is how many points you are paying and if that includes prepaids into an escrow account such as property taxes and or insurance. These will raise closing costs.. They should by law furnish you with a good faith estimate that breaks each and every closing cost down. good luck with your purchase
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Sep 13, 2011
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