Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Closing Costs - How much to expect?
Hi all!
We are about to get started on the process of buying our first home, and wanted to get some feedback regarding what to expect in terms of closing costs. When you closed, apx what % of the purchase price were your closing costs? (Not including DP)
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Re: Closing Costs - How much to expect?
Anything you can achieve through hard work, you could also just buy.
Jesus! I cannot imagine them being that high, even in a HCOL area like ours! I might faint lol Everything that I read has seemed to suggest that 3% is about normal, but I was planning on up to 4% just in case. That is still a ton of money (between 12 & 16 grand), but 20 grand would kill us.
Don't forget about prepaids...insurance, HOA, etc. It can all add up quickly!
My Valentine Bookends (2~13~13, 2~15~09)
I read in Home Selling for Dummies, that someone should expect closing costs to be around 10% of the sale price (this is INCLUDING both the REAs [selling and buying agents] commissions). Obviously, a buyer does not pay for a selling agent's sales commission, but the book said to expect the total to be around 10% of the sale price.
You can start by reading Home Buying for Dummies. It's user-friendly and a cheap, quick read. You can skim over parts not relevant to your situation. Have fun!
We just received an estimate of almost $14K in closing costs for a $227K house, which comes out to about 6%. It was more than I had expected based on what I've read online, but since we are putting down less than 20%, the upfront mortgage insurance is a big chunk of it. Here is the breakout if you're curious. This is for an FHA loan.
Loan Origination Fee (1% of loan) $2,190
Processing Fee $795
Underwriting Fee $795
Appraisal Fee $495
Tax Service Fee $63
Up-Front Mortgage Insurance (1.75% of loan) $3,833
Closing/Escrow Fee $550
Document Preparation Fee $150
Notary Fee $75
Lender's Title Insurance $440
Courier Fee $50
Endorsement $50
Loan-Tie-In $150
Owner's Title Insurance $1,012
Mortgage Recording Charge $120
Hazard Insurance Reserves (2 months) $167
County Property Tax Reserves (6 months) $1,418
Daily Interest Charges (15 days) $359
Hazard Insurance Premium $1,007
11-13-10
Planning + Married
In my experience, this varied a lot based on several factors and a lot of the fees are determined by your state/municipality.
Are you already working with an agent? If we were interested in a property, we could ask our agent to prepare a worksheet that would show down payment, estimated monthly payment and closing costs. If you already have one, I would find a random property in the price range you're considering online and ask her to prepare one. It was a computer program, so ours just plugged in a few numbers and popped it out when it was ready. That would probably give you a better idea for what to expect in your scenario. GL!
Our RE agent and loan officer have both told us to expect around $5K in closing costs on a $265K purchase with 20% down. Though hopefully I will convince DH to buy more points, which could increase it quite a bit...
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