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Help!
Husband and I are looking to buy a Co-Op in Queens. We've been pre-approved for our mortgage, but the closing costs we've been quoted seem VERY high.
I'm being quoted almost $7000. That seems really high, especially for an apt. What's making that so high is the Mortgage/Intangible Tax.
I was told that Co-Op closings generally only cost about $2000. Anyone been through this before?
Any and all advice will be helpful
Thanks
Not entirely sure iwth the co-op but was told that closing costs depend on the amount of the mortgage--and i know that to be true--with that said if you are buying points the cost is higher ---with the good faith estimates they are generally on the high side--although in this process i did find out that NY charges more fees than NY--a friend just closed in NY with a mortgage of around 250-260 and her costs were between 7-8(sorry i dont remember all the exact numbers)--
hope this helps--
Laura
Our closing costs are estimated at a little over $10,000, but that includes items that have to be pre-paid, such as a full year's insurance on the house, 6 months taxes, title insurance at about 1% of the loan and the Nassau/Suffolk tax which is almost $2000 alone. It's a little easier to stomach when you figure that it's not all money you're just paying out - some of it - the homeowners insurance and taxes - are money you would have been saving aside anyway.
My clsoing cost were almost $12000 that was in Westchester. We had to pay for the taxes and all the other crazy things that came our way. It was nuts...and the scariest opart is that you don't know untill 10-24 hours before
How big was the difference between the good faith estimate and the actual amount??? I'm wondering how much over the estimate it's going to be. Our mortgage agent did use some worst-case scenarios with regard to anticipated expenses but I'm still expecting it to cost more than anticipated.
I hope no one is too upset with me posting here...
I live in Buffalo, as some may know already...we just signed our buying agent from HUNT who has helped us tremendously. We were pre-qualified yesterday (providing I now just have to send in all the W2's, bank accts and so on to be pre-approved.) We also had everything layed out for us in the way of an attorney, taxes (which here is a year of taxes, but much cheaper than there,) and all of the other hidden costs of buying a home! We also have a great mortgage company that will allow us to call in houses we are interested in with the price and taxes which will give us an amount for a monthly payment.
They add in all of the predetermined fees.
Have any of you been aware of the FHA loan which supposedly doesn't make you have a safe keeping of so much money (ususally a couple months of mortgage?) Also, there is such a thing as concessions - the seller agrees to pay the taxes for you and you end up taking out the loan for the additional amount with the mortgage. We will be using this because we do not have enough cash to put down for all of the closing costs and taxes and fees.
I guess overall I would recommend a buying agent. I read a lot of info on the buying process and she really put it all together for us.
Not sure if this will help anyone, but I hope so.
Sunday we are off to look at 6 houses... {sigh} seems hard to believe. :)
Nancy
Our closing was alittle over $5,000-- we were told close to $8000-- and this included the homeowners, taxes, title, etc-- I knew NJ was different but i didnt think that different--again i know mortgage amount makes a difference --and i guess if some people have PMI to factor i--does that come into play with closing costs as well? thankfully we were able to put down 20%--my friend wasnt(they had 10%) but they got around PMI so if anyone needs more info on that I can help--or at least try to --
Laura
I would like to know how your friend got around the PMI. We do not want to pay that so we are saving towards 20% with a little extra but if there is another way....do tell
Thanks.
For getting around the PMI, ask your broker about a 20:80 loan. You take out 2 mortgages: say you put 10% down. You take out 2 mortgages, one for 20% and the other for 80% of your total LOAN. This way, you avoid the PMI. Unfortunately, I can't do something like that becasue they don't allow them for Co-Ops.
On my closing costs issue I found out that you don't pay the mortgage tax on coop closings. Which is what's been inflating my estimate. The person who gave me the estimate doesn't do Co-ops often and inserted the worng #.
Now if the seller would only call us back...
Thank for all your help.
what KGB said was what they did-- and there are options on teh second half of the 10%--if you can handle doing it in 15 years, etc-- ask your mortgage company or if you dont have one yet call one and ask about it--
one other word of advice that we didnt follow--jeremy wanted to have $20K in the bank--extra money before we bought a house-- we ended up finding the house of our dreams so we didnt have the extra--well within the first month we have easily spent $20K and that was without improvements to the house--just settting it up(tools/shovels/outside stuff) and furniture--so the longer you wait and save the better-- i dont regret what we did but as always extra money def would help us right now (dont we always say that)!!
Laura
Very interesting. I found lots more information on line now that you have told me this exists. Thanks for the help.
