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Company Loan Type APR Est. Pmt.

mortgage broker charging $9k+ for closing costs on $37k home

Posted on: 13th Mar, 2012 10:56 pm
That includes the 3.5% down, but that would only be like $1500. So 8k in closing costs on a $37k property? Before I start going through all the bank #'s Anne jargon I don't understand, do those figures sound right? Keep in mind because of some complication I couldn't get down payment assistance so I have to pay out of pocket all closing costs. Thanks!
I'm a 35 y/o male btw. I don't know why I have a female as an avatar
Posted on: 13th Mar, 2012 11:00 pm
Hi juntjoo,

The closing costs will vary from one state to another. In some states, the closing costs are higher than other states. If you are living in one such state, then your closing costs will be higher. You can contact the lender and ask him to let you know about the closing costs in details.
Posted on: 14th Mar, 2012 12:41 am
Since youed to what the broker was CHARGING, one would think $8,000 was the figure on GFE (good faith estimate) Block 1 (or perhaps Block A if Block 2 were a positive number). Yes, that would be on the high side.

But then you go on to mention that down payment and then a more generic term of closing costs. Are you now talking Blocks A + B plus downpayment? Gets a bit closer to reality but still high … maybe. Since you mentioned 3.5% downpayment, assume yng a FHA loan which would include a fee (upfront mortgage insurance) which most folks do NOT pay in cash. Also the GFE could list some mythical items traditionally paid by the seller but in the governmemind, is a buyer cost. Governmul hand appears in some states with a mortgage tan be substantial. Then there are prepaid charges (amount to establish an mortgage escrow account, first year insurance premium, and a small amount of interim interest (from closing date to end of month) which reflect some of the burden of homeownership and do not end up in the broocket. The initial home insurance could be significant since youe buying a modest home and the amount of homeow insurance is based on replacement cost.

Big question is why when you were given the GFE, why did yohe deal and hand over a check for the appraisal? Not sure where you are in this transaction but you can always if you can find a better deal elsewhere.
Posted on: 14th Mar, 2012 04:59 am
Well, they could have given me a breakdown of the costs in Chinese and it would have made just as much sense to me. The original GFE included down payment assistance so it was easy to swallow. So okay, if it includes a year of homeowners insurances, which you're right is really expensive based on replacement cost, and some of a month's interest, that would bring the closing costs down to 6k. Still high. I guess I'll look more into the breakdown I have somewhere ....
Posted on: 14th Mar, 2012 07:59 am
Hey juntjoo,

As Adonis stated, depending on where you live, the total closing costs will vary. Contact your lender and ask plenty, and I mean Plenty of questions about your closing terms.
Posted on: 18th Apr, 2012 09:24 am
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