How much are closing costs on a house usually?? Is it a certain % of the cost of the house? Do you have to pay them at closing, or can you include them in your mortgage? Thanks!
anna
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Re: closing costs?????
All I remember at closing was signing my life away!! LOTSA MONEY !
dgtlsunshine
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When we started looking around they told us to estimate closing cost to be about 5% of the price of the house.
Remember that what they give you is only an ESTIMATE.
I can't stress that enough. We are close to closing and we are coming in under 5% but it is best to estimate high than low.
februarybride
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That's about what ours was too around 5%. You have to be careful though when you get your estimates from different banks while your shopping. Some forget some very important charges just to come in lower.
Just out of curiousity, but does anyone know if closing on a new constructions is double the amount of a resale in closing costs?
Fran M
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Closing cost vary greatly. The fees are paid out to various entities other than the lender. I guess you could open a line of credit to cover them but then you are paying interest for XX years for these items. Here are some of the larger items that we included in our closing budget:
Our Attorney Fee Bank Attorney Fee NYS Mortgage Tax Mortgage Inerest (up to one month depending on the date you close) Local Taxes* 1 year homeowners insurance* Title Insurance for you and the lender
* Some lenders will want you to put up to 1 additional year of insurance and tax money into escro - avoid those lenders if you can
There are also smaller items that add up like Survey Fee ~ about $400 Bank Fees ~lots of little misc stuff about $500.00 Oil remaining in tank remaining service contract values if any ~ alarm service, heating/ac service contract etc. Tip for title service company
dgtlsunshine
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Re: closing costs?????
We are doing new construction and going with the builder's preferred lender we are coming in lower than 5%.
I did not notice anything really different in closing cost when we were considering resale homes though.
I think its about the same either way you go.
ss2002
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When we were shopping for a mortgage, the loan officers all provided a 'good faith estimate' of what our monthly payments would be and what closing costs would be.
I don't remember the exact number, but 5% sounds about right.
dgtlsunshine
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Let me tell you what we have in closing cost
Appraisal Fee Credit Report Lender's Inspection Fee Tax Related Service Fee Processing Fee Underwriting Fee Flood Cert Closing or Escrow Fee Document Preparation Fee Recording Fee City/countytax/stamps state tax/stamps pest inspection survey interest for two days mortgage insurance premium taxes and assessment reserves
keke2402
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OMG...I'm gonna cry We'll have to save for an extra 2 years just to afford closing costs!!!
dgtlsunshine
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Well actually with new construction our builder is covering our closing cost as an incentive.
We did have to pay the insurance premium though.
I have also seen people buy resale homes and ask the seller to cover closing cost.
flyin'bride
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We recently purchased a new construction home. We used one of the builder's preferred lenders. Since we did that the builder paid up to $5,000 in closing costs. It turned out that was sufficient for the lender and we didn't have to pay anything out of pocket (other than the downpayment of course and homeowners insurance).
I have also seen the seller pay for closing costs on resale homes.
Good luck with your new home!
mlp924
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Some lenders will incorporate your closing costs into the loan itself as an incentive.
michele31
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It all depends but on an average priced (is there such a thing anymore?) home I would have a total of $10K set aside. Some costs can be incorporated into the mortage and the lender will give you a Good Faith Estimate prior to closing but you still need to have a bit on the side for things like oil left in the tank.
susans
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We were told 5% as well. We came in a little bit less than that but I'd say it's good to set aside anywhere from $10K-$20K just in case.
smooch
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We were under 5%, but we have a big mortgage so I don't know if that helps. I think we paid something like $12K in closing costs. NYS alone changes something like $3K for a transfer fee. We were pretty ticked off about that....
kkattau
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i work for a title insurance company. Depending how much you are borrowing and how much you bought the house for depends on the closing costs. It does usually cost between 10-15k. im me if you have any questions
