Home Buying in San Jose>Question Details

Zee, Home Buyer in San Jose, CA

Closing and Settlement Cost in San Jose, CA

Asked by Zee, San Jose, CA Sat Nov 27, 2010

I am buying a house in San Jose city of CA; with house price of $525,000.
With 20% down, and $417K loan amount, how much should be my total closing and settlement cost?

Help the community by answering this question:


that depends on financing terms, points..... If it it all cash for an low end it is < 3K....
0 votes Thank Flag Link Mon Nov 29, 2010
Hi Zee…There are some great answers that have been provided by this forum so far, so instead of trying to reinvent the answer here are some quick pointers to consider:

1). Your Realtor & Loan Officer are Great Resources - Both should be able to provide you with an accurate estimate of the closing costs that you are likely to pay for the purchase price and financing terms you have provided…in fact, once you have provided some basic personal information along with the property address and sales price, your loan officer is required to provide you with a Good Faith Estimate within 3 business days.

2). Fees and Closing Costs Stated on GFE’s MAY NOT Accurately Reflect your Actual Closing Costs - GFE’s these days will tend to be over-estimated by the loan officer providing them since the loan officers may be liable for covering any fees that are understated. This being said, in many instances the GFE’s provided DO NOT take into account the customary allocation of closing costs for individual counties.

3). Are You Receiving Any Credits? - Your final closing costs MAY be further offset by credits provided to you by other parties to the transaction (your lender, your real estate agent, or the seller), so the initial estimates provide may not accurately reflect your net closing costs.

4). When in Doubt, Ask Questions - Review the GFE’s received with both your loan officer and your real estate agent. Both should be available and knowledgeable enough to assist you with your questions about closing costs. If there additional title and escrow questions then forward these concerns to the escrow officer if you’re already under contract.

Real Estate & Lending professionals can provide accurate estimates of the possible closing costs you may incur through a financed purchase transaction, but fees can change depending on the finalized purchase agreement and based on the final interest rate chosen for your loan documents. But keep in mind, the intent of providing estimated settlement costs these days is to inform Buyers of ALL possible charges that MAY be incurred through the purchase and financing of real estate.
0 votes Thank Flag Link Mon Nov 29, 2010
Go to my website, scroll down and answer questions in the smartclosing widget and you will get the answer. At least you get an idea. Try it, it cost you nothing.
0 votes Thank Flag Link Sun Nov 28, 2010
Hi Zee,

Much of my answer depends on where you are in the buying process. The amounts showing on the GFE are estimates which may change based on the date you actually close. They are generally a bit high to make sure you have enough money to close. The rate sounds about right but I would be more concerned with the 7/1 ARM especially if you’re putting 20% down. If you have not submitted an offer to purchase the home, I would suggest getting a second opinion on the loan term. With my buyers I suggest they first contact the bank or credit union they have a relationship with. If you’re not sure about the rate and term, I suggest contacting another lender to get a second opinion. It takes a little more time but we’re talking about more than half a million dollars of your money. In today’s market a 30 fixed should be the first quote you receive. Unless you completely understand the implications of getting an Adjustable Rate Mortgage – Do Not Do It!!

That being said, if you are already in contract, you have time constraints to consider. I would still check another lender. You may find one that may be able to honor the contingency dates. You should know you are not obligated to take a loan until you sign the final loan documents. Understand if you change lenders in the middle of the process you may owe addition credit report and appraisal fees. Bottom line, if you are not happy, talk to your lender and real estate agent.

They should have your best interests at heart.

Feel free to contact me if you would like more information.
Web Reference: http://www.calresciplin.com
0 votes Thank Flag Link Sat Nov 27, 2010
Removing the impounds and any points buy up, what should be the closing cost on $417K loan, including title fee/insurance, transfer fee, doc fee, and loan origination fee, etc.

House is in San Jose and it is 7/1 ARM loan.
0 votes Thank Flag Link Sat Nov 27, 2010
Hi Zee, have your Realtor and/or loan officer go over each item on your GFE and explain to you exactly what each fee is for. Sometimes closing costs look high but the majority of those costs could be impounds required by your lender, such as your property taxes (possibly 2 months impound) paid in advance.
0 votes Thank Flag Link Sat Nov 27, 2010
Thanks all for your replies and suggestions.
I did receive a GFE but it looks too high to me (excluding the points buying); almost 3% in San Jose city.

Also, the rate being offered is 3.75% for 7/1 ARM with 20% down. Is this reasonable?
My credit score is around 720.
Also lender has asked me to pay few credit cards.
Please suggest.
0 votes Thank Flag Link Sat Nov 27, 2010
Zee, it may interest you to know that in Santa Clara County, according to local custom, the seller pays escrow charges, title fees and county transfer tax. (In San Mateo County, by contrast, it is the buyer who picks up the tab for both escrow charges and title fees, while the seller pays the county transfer tax.)

What my colleagues have said about getting a net sheet still applies.


Daniel Berman
Pacific Century Realty
Buyer Rebates to 50%
Listing Commissions as Low as 1%
Multilingual Services
0 votes Thank Flag Link Sat Nov 27, 2010
Dear Zee,

If you are working with a lender or Realtor and, they have not provided this information to you, slap them now.

A person with a lender or Realtor who does not provide this data, needs to be replaced by someone who works within basic ethical standards and who believes integrity is important.

Give me a call, I would be honored to help you.

Kind regards,

Louis Stone-Collonge
408 348 4026
0 votes Thank Flag Link Sat Nov 27, 2010
Hi Zee,
As another agent mentioned, a net sheet can tell you how much your closing costs are estimated. This estimate is close to your actual one and any agent should know how to do it.
Good luck,

Kevin Vo
San Jose Realtor
Ceritfied Short Sale Specialist
0 votes Thank Flag Link Sat Nov 27, 2010
You were provided this information by your lender. Lenders are following procedures and laws and I don't know any that would not provide this information. Ask your real estate agent to proved a net sheet to compare all the figures. Agents should know easily how to do that.
408 379 2001
0 votes Thank Flag Link Sat Nov 27, 2010
Your agent and your lender should have provided this to you.

Your lender will determine what is required on your loan, prepaid reserves and loan fees, the day of closing affects what property tax pro-rations will be, what you negotiated in the contract, etc. Since your property is in the city of San Jose, and IF you negotiated the standard and customary split of fees, you will pay for title insurance and split the city property transfer tax 50%/50% which is $3.30 per $1000 of property value, or the contract sale price of $525,000.

You can use 2% as a ball park, but please don't rely on it. Your lender calls the shots. They are looking at debt to income, and I've seen them require a credit card to be paid off as a condition.

Congratulations on your purchase and enjoy your new home.
Web Reference: http://terrivellios.com
0 votes Thank Flag Link Sat Nov 27, 2010
Zee -

Estimate of 2% of sales price is about right.
However, variables include cost of appraisal, cost of credit report (some lenders will credit these back), cost of buying down any points, processing fees, cost of longer lock periods. Looks at the good faith estimate for a more detailed cost but is only provided once a contract on a home is written/accepted. Your loan officer should be able to give you basic fees ahead of a purchase but these might vary once the the actual purchase is made.

See this web site for more help

Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Sat Nov 27, 2010
The closing cost is around close to 2% = $8,400. You should contact your loan officer for a good faith estimate.
0 votes Thank Flag Link Sat Nov 27, 2010
For an accurate picture, consider asking your loan officer for a good faith estimate--then plan accordingly.
0 votes Thank Flag Link Sat Nov 27, 2010
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