Question removed

Asked by Babe, Detroit, MI Thu Jan 8, 2009

This question was removed by its author.

Answers

7
Sonya Loose, Agent, Beaverton, MI
Thu Jan 8, 2009
B. You've gotten great responses! But I would like to add that if you are going to shop lenders make sure and ask for a Good Faith Estimate and see what is indicated as your APR. This percentage is a number that includes both the interest rate stated and the closing costs in one number listed as a percent. The lender with the lowest APR is charging the least amount of closing costs. Good luck!
0 votes
Sonya Loose, Agent, Beaverton, MI
Thu Jan 8, 2009
B. You've gotten great responses! But I would like to add that if you are going to shop lenders make sure and ask for a Good Faith Estimate and see what is indicated as your APR. This percentage is a number that includes both the interest rate stated and the closing costs in one number listed as a percent. The lender with the lowest APR is charging the least amount of closing costs. Good luck!
0 votes
Dylan Browne, Agent, Fredericksburg, VA
Thu Jan 8, 2009
I hope my answer sheds some light on this issue. Closing cost varies, depending strongly on the type of loan you are using, and the state you reside in. The safest way to get answers to this question is to consult your loan officer for a Good Faith Estimate, and request a Preliminary HUD1 from your title or closing company. Your Realtor can review these documents with you to further help you understand what constitutes closing cost, and why you are paying them. 3% of your sales price below $500K will be a safe margin to add to your expenses.
Web Reference:  http://DylanBrowne.com
0 votes
Derek Bauer, Agent, South Lyon, MI
Thu Jan 8, 2009
Good day!

This is a loaded question, as "closing costs," mean different things to different folks. I consider closing costs to also include the, "prepaid items," like property tax reimbursement to the seller, establishment of escrows, etc. To that end, it really depends on if the taxes are homesteaded or not, whether the loan is FHA or not (for upfront MIP), etc.

If you are strictly asking about the costs a lender or mortgage professional would charge a borrower (i.e. appraisal, application fee, and/or underwriting/processing fee), although I can't say there is a normal out there, I would say anything under $2,000 would likely be competitive for a non-challenging credit / borrower situation ... that being the case as long as the interest rate being provided is competitve, as well.

If that doesn't fully answer your question, or if you would like expansion or to discuss further, please don't hesitate to contact me.

Derek Bauer, Associate Broker / Realtor
Real Estate One
Web Reference:  http://www.DoorToDreams.com
0 votes
Robin Kay Co…, Agent, Plymouth, MI
Thu Jan 8, 2009
Yes, Lynn is right in stating that we can write an offer to ask the seller to pay some of the closing costs. This amount is usually limited (by the lender) to between 3% and 6% of the sales price which helps the buyer out with the costs if accepted. Keep in mind that the minimum downpayment on an FHA loan is 3.5% (effective 1/1/09) which must be paid by the buyer (or a gift of equity from a relative) and cannot be received from the seller, at least not now. There is some legislation under consideration that may bring back the Seller Funded Downpayment Assistance programs but who knows if or when this will happen.

I am also aware of at least one local bank that is offering 0 down financing on their bank-owned properties, but this is really rare anymore.
Web Reference:  http://MIHomeSeller.com
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Jan 8, 2009
Most will state if property is less than $500K closing costs are $5K, if over $500K closing cost could be up to $10K or more. Hope that assists.

You can ask for seller contribution for closing costs which rolls into your loan your buyers agent can assist in submitting an offer with those terms.
Web Reference:  http://www.lynn911.com
0 votes
Robin Kay Co…, Agent, Plymouth, MI
Thu Jan 8, 2009
Hello, this is a good question and one that is asked by every buyer. Unfortunately, it's not an easy question to answer because it depends on the type of loan you will be using and the costs assessed by the lender which may be related to your particular credit. Additionally, the term "closing costs" in most people's minds encompasses a proration of property taxes paid back to the seller based on your closing date and the tax billing dates of the particular municipality. Those prorated taxes will be based on the value of the home as assessed by the local assessor and whether the home is "homesteaded" or "nonhomesteaded".

I don't know if this answer was at all helpful, but it does demonstrate that there is no clear answer to your question. I would be happy to provide a very short list of lenders that I recommend if you'd like to contact me directly through Trulia. You could give them all the same scenario and ask them to give you what's called a Good Faith Estimate to make sure you're comparing apples to apples.
Web Reference:  http://MIHomeSeller.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more