How much do closing cost typically run in memphis?What % of the sale price?

Asked by B, 38104 Mon Aug 17, 2009

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Terry Longmi…, , Memphis, TN
Tue Aug 18, 2009
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B
They are going to vary from sale to sale but 4.5% on the low side and 6% on the high side. When you find a property you should get a good faith at that time becasue it will vary with taxes and insurance.
0 votes
Jo Shaner, Agent, Memphis, TN
Tue Aug 18, 2009
Dear B,

I assume you are referring to buyer's closing cost -right? If so, realize that this figure in most cases is really referring to the buyer's closing cost, prepaid items (things that go into an escrow account) and possibly points. Depending on the type of loan that the purchaser obtains - can greatly change the allowable amount that the seller can (didn't say is willing to) pay.

An FHA or VA loan for the buyer has what we call non allowable fees. The buyer cannot pay them.....period. It must be paid by the seller. These fees range differently due to lender underwriting fees, attorney fees (for the Vet - the seller must pay both of the fees). Also, depending on the time of the year - when taxes are due and how much is required by the lender for "reserve" - it can change the amount needed. Conventional loans the seller can pay up to 3%, however if the buyer's put down a large downpayment - this figure can be increased.

The best way to project the needed amount is to REFER TO YOUR GOOD FAITH ESTIMATE" provided by your lender.

Now, on the seller side, the amount is considerably lower - a good agent can help you to keep these under $800. The commission is then added into the mix and that is something that the seller has agreed to on the front end when they listed their home.

Hope this helps!

Jo Shaner
LipseyShaner Team LLC.
Web Reference:  http://www.lipseyshaner.com
1 vote
Gerald Willi…, Agent, Germantown, TN
Tue Aug 18, 2009
B,

Closing costs can vary significantly depending on a number of things and the items included in "closing costs" . As an example, some include the prepaid items such as taxes and insurance collected to set up escrow accounts, others do not. The cost of attorney fees can vary as well. However, the largest items are those charged by your lender and these cost will vary depending on the method of financing as well as things like, discount points, origniation fees, appraisal fees, etc.

Once you have decided on a property, I recommend that you ask several lenders to provide you what is call a "Good Faith Estimate". This documents will show all the lender fess, interest rate to be charged and will estimate the other items such attorney fees, escrow collections, taxes and insurance. It will also show you the monthly payment including the taxes and insurance. In my experience, these estimate documents tend to be a little higher than the actual costs.

If I provide any additional information please don't hesitate to give me a call.

Gerald Williams
Affiliate Broker
Mortgage Loan Officer
BenchMark Realtors, LLC
BenchMark Mortgage, LLC
901-413-2233
gh_williams@yahoo.com
1 vote
Carrie Crowe…, Agent, Southaven, MS
Tue Aug 18, 2009
hey B,
Great question...not an easy answer. If you are working with an agent, or a mtg person, they can help you determine and estimated closing cost based on your financing and other requirements. Closing costs are different for buyers and sellers....if you are the seller, you can get the same results by checking with your agent or closing attorney.

Hope you are finding the answers you are looking for.
Web Reference:  http://carriecrowell.com
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