FTB: Approx Loan Cost Illustration

Shortie24 · May 2013

We were finally able to get DH's credit score up! The lowest is a 635 which they go by. Our mortgage lady, Marie, said it's do-able, but at a slightly higher interest rate and because of that, we would not be able to qualify for any state assistance programs.

So my question is: She said that usually the seller pays about 3% of closing (if not more) and that we just have to prove our $5k in the bank and 2 months of payments which she said a printout of his 401k will be okay.

Looking at this I see that the approx. closing is $10,806.51 and then another line says Down Payment as $4,725.00.

Wouldn't that mean a total of $15,531.51 if seller pays nothing? Marie says we're good to go with just the $5k.

Is there anything on here that looks weird?

And as always, thanks ladies for answering my dumb questions!

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justme04 · May 2013

Not that I'm much up but we just ran into the fact that we were told that we only needed our down payment and half of closing costs (which would be $4000) the rest could be covered by seller's assist. As we were making and trying to negotiate an offer on a house our relator told us our agent informed us that we really needed $8000 for closing costs with seller's assist covering the last $4,000. It isn't a problem as we have that but now our emergency repair fund is less then we thought we'd have. Our mortgage broker also told us we could increase the interest rate in order to lower the closing costs a bit if we want to...which we will try to avoid. Being told we needed more for closing costs then we thought nearly panicked us though....lol. Unfortunately, we will have to walk away from the house we put an offer and tried to negotiate on because they weren't willing to budge at all were asking a great deal above appraisal. I understand pride in ownership but they are trying to sell the place aren't they? Back to touring houses again. I really hope we find the house we are meant to have soon though. I'm getting discouraged.

frome · May 2013

I just want to point out that in the "Approximate Total of Funds Needed to Close" column the $4915.25 is already listed in there, so there's no need to add it again to the $10,806.51.

ETA: Never mind. I got the $4000 in my head and forgot you were talking about the down payment. My bad.

GeorgiaRiah · May 2013

Okay so I can only tell you from my experience. With FHA you are allowed to ask for up to 6% in closing costs. Each loan type varies so you will need to find out what your loan allows. I asked for the full 6% but knowing I was really negotiating from the bottom line of what the seller would be getting after my closing costs were removed. I paid 5,000 down. I happened to use a state down payment program for first time buyers so I really did not pay that 3% out of pocket. My closing costs were less that 6% so the seller ended up not paying as much as we thought. The closing costs were a little less than 8k (that includes pre-payments on insurances and taxes). So if I only had them pay 3% then with down payment I would have had to have brought about 8 or 9k to closing. I recommend asking for everything you can when you go to make an offer. Just know that you might pay more for the house if you are asking for 6% in closing costs. Please get with your loan officer and find out what the max % you can ask for in closing is. You will want to know this when you go to make an offer.

Shortie24 · May 2013

Thank you for all of this! We have an appt with her Tuesday morning. I'm putting together a list of questions I need to ask her!

FTB: Approx Loan Cost Illustration

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