how do you calculate closing cost?

Asked by Cricketcris, Memphis, TN Tue Jul 27, 2010

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Gerald Williams’ answer
Gerald Willi…, Agent, Germantown, TN
Tue Jul 27, 2010

Not where you are in the process. If you are trying to figure out a budget for purchasing a house I would suggest using 4 to 4.5% as a buget number. If you have begun your search, I would suggest that you contact your lender and they should be able to give you a Good Faith Estimate which will be a better gauge of the actual cost including the prepaid items.

Gerald Williams
Affiliate Broker
Weichert Realtors - BenchMark
0 votes
, ,
Tue Jul 27, 2010
Hi Cricketcris,

As a home buyer, you can figure that your closing costs will run from 3 to 6% of the sales price depending on your lender, the loan program, the loan amount and third party fees.
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Anna M Brocco, Agent, Williston Park, NY
Tue Jul 27, 2010
If purchasing, much will depend on your loan and lender fees--ask your loan officer and or attorney for a good faith estimate as it relates to you and your purchase.
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Jason Stevens, , Englewood, FL
Tue Jul 27, 2010
As a buyer or a seller?? As a buyer are you paying cash or financing?

A lot of that will depend on what you negotiate in your contract and what costs would be associated with your lender.. However as a good rule of thumb you can anticipate as a buyer closing cost to vary from, 0.5% to 1.5% of the purchase price if paying cash and if financing can get up to 3-5%. Remember closing costs DO NOT include your deposit or money down.
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