Are these closing costs sound reasonable ?

Asked by Novice_sr, Fremont, CA Wed Jan 30, 2013

This is for a loan of about 150k

seems a little high for this loan amount. But again I could be wrong.

Originnation fee : 2892
Appraisal fee : 525
Title services and lender's title insurance : 1408
Owner's title insurance : 1056


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Stephanie We…, Agent, Gilbert, AZ
Thu Jan 31, 2013
for starters, I would say the "origination" fee is high...most of the lenders I work with don't charge that fee any longer. For a 150K home, a $525 appraisal also seems high along with the title fees. I would definately recommend shopping around for other lenders if you are not currently under contract. Regards :)
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June, Both Buyer And Seller, Phoenix, AZ
Wed Jan 30, 2013
They are VERY high. Almost 2% origination fee is excessive. All other fees are also high. Shop around. Your agent should know of a different title/escrow company who will be able to give you better rates. If you do not have an agent it will be harder for you.
0 votes
Patty Fisch, Agent, Gilbert, AZ
Wed Jan 30, 2013
Here's the link if you want to try that tool - it doesn't require your SSN or name - it lets you enter your credit score directly - so none of this will hit as inquiries on your credit report....
0 votes
Patty Fisch, Agent, Gilbert, AZ
Wed Jan 30, 2013
In AZ -normally, the owner pays the title insurnace - the lender needs to disclose the cost to you, but you should see a credit from the seller on this when you see your settlement statement or HUD closing statement. Your agent, lender or Escrow officer can help you confirm this.

The origination fee does seem high - but you may be getting a good rate which may make it worthwhile.

There's a nice internet tool on zillow - Mortgage Marketplace which allows you to enter some general information and then lenders tell you what they can do for you, including rates and loan costs. It is a ncie way to "comparison" shop.

You do want to make sure your lender can perform to your contract terms - specifically your COE date and ensuring their loan documents get to Title well before closing so you don't have any delays. Your Realtor can typically recommed a lender who they have positive experiences with.

Good luck on your new home purchase and welcome to Arizona!
0 votes
Thank you! Home value is 195k, and the rate is 3.875%.
Flag Thu Jan 31, 2013
Jose Dias, Agent, Scottsdale, AZ
Wed Jan 30, 2013
I agree they seem high.

The only one that seems in line with the ones I have seen for my clients with similar loans is the title insurance. They are usually between $1,000 and $1,100. So yours seem fine.

The other charges seem higher than what I have seen.

Good luck!

Jose Dias, REALTOR
(623) 418-5700
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