Fannie Mae accepted my offer of $12,500 on a home. I am paying cash and not buying insurance. Are these fair fees?: Closing: $500, Signing: $150

Asked by Johnny500, Jackson, MI Fri Nov 11, 2011

Closing: $500, Signing: $150, Abstract/Title fee: $210, Deed prep fee: $60

Help the community by answering this question:

+ web reference
Web reference:

Answers

5
Johnny500, Home Buyer, Jackson, MI
Fri Nov 11, 2011
Right, I just assumed that fees would be small (not around $900). You're right, percentage-wise it is very high, and that's what shocked me.

Fannie Mae is only required to pay up to $316 for "owner's title policy," which I believe is related to insurance, and thus isn't worth anything to me.

I may think about insurance in the future, I just don't have time for it right now, and it's a relatively small investment.

The main thing that bothers me is that the contract I signed said something similar to "buyer is responsible for all fees related to closing, including ..." without giving any dollar amounts.

What keeps them from charging $1000, $2000, or $3000 for a "settlement fee"? Is there a law regarding this? Signing a contract to pay undisclosed fees seems really illegal/unethical to me.
0 votes
Bob Jakowini…, Agent, Livonia, MI
Fri Nov 11, 2011
I guess it would be somewhat reasonable as these fees do vary just a bit from place to place (even company to company). The weird part is the price of homes went down so much that the fees seem so much higher (percentage wise)
0 votes
Angie Simpson, Agent, Studio City, CA
Fri Nov 11, 2011
Johnny,

Those do not seem like unreasonable amounts. Even if you pay cash for a home, you still have to pay the parties that provide services during the course of escrow. It is curious to me that you are not getting some credit back from the seller to cover non-recurring closing costs. Fannie Mae almost always offers credit for owner occupied purchases.

I would get insurance too. Is flooding a problem where you live? If so, get flood insurance at the very least.

Congratulations!

Angie Simpson
Coldwell Banker
0 votes
Terry McCarl…, Agent, Cape Coral, FL
Fri Nov 11, 2011
Looks reasonable to me but I would question why you are not buying insurance to protect your investment as mentioned by Johnny.
0 votes
Johnny Huang,…, Agent, Walnut Creek, CA
Fri Nov 11, 2011
Looks fair...don't forget title insurance and hazard insurance to protect your investment!
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Zip Codes

Email me when…

Learn more