NWR: Closing costs

Just wondering if anyone could help me out. DH and I are looking at our first house - can't really put in an offer yet BUT we want to get used to the whole process.

So, we have a certain amount in the bank for a down payment but how much do we have to figure out closing costs to be? How does that work? What is it based on?

I don't want to go in thinking 'Oh I have $50K for a DP' but then realizing it is $10K for closing, and $40K for a DP

Thanks

Hmm it all depends on the type of loan you will take out and what kind of house you will buy.

Safely I would say at the most you are looking at
5 to 6% down just on closing cost. Again it all depends on the type of loan you take out. On a full doc loan (this type of loan requires you to provide full employment records as well as past w-2's.) and if you have good credit, you will probaly be able to put down less, say 2-4%. IF you do a no doc loan ( this type of loan is for those who don't work for a lot of money, they usually go by your credit, so it has to be up there in the 700's) you have to put more money down because the bank is more at risk of taking out a loan for you, so say at most 6%.

But remember also, your credit affects this a lot, as well as assets you have in the bank, saving accounts, checking accounts, cd accounts, etc.

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Posted by rahana316

Hmm it all depends on the type of loan you will take out and what kind of house you will buy.

Safely I would say at the most you are looking at
5 to 6% down just on closing cost. Again it all depends on the type of loan you take out. On a full doc loan (this type of loan requires you to provide full employment records as well as past w-2's.) and if you have good credit, you will probaly be able to put down less, say 2-4%. IF you do a no doc loan ( this type of loan is for those who don't work for a lot of money, they usually go by your credit, so it has to be up there in the 700's) you have to put more money down because the bank is more at risk of taking out a loan for you, so say at most 6%.

But remember also, your credit affects this a lot, as well as assets you have in the bank, saving accounts, checking accounts, cd accounts, etc.

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Thank you

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Posted by ant n tilde

Just wondering if anyone could help me out. DH and I are looking at our first house - can't really put in an offer yet BUT we want to get used to the whole process.

So, we have a certain amount in the bank for a down payment but how much do we have to figure out closing costs to be? How does that work? What is it based on?

I don't want to go in thinking 'Oh I have $50K for a DP' but then realizing it is $10K for closing, and $40K for a DP

Thanks

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Im going through this now. Closing cost will also include your first year Homeowners insurance and taxes. Mine will cost almost $20,000.

You pay the broker fees, atty fees, title costs survey costs. Your atty and broker will give you a breakdown of the 'anticipated charges' they should over estimate b/c you don't find out until the DAY OF THE CLOSING what the costs actually are. So bring more than they say just in case.!!

Im closing on my house MONDAY!! I CAN'T WAIT ANYMORE!!!

GOOD LUCK WITH YOUR SEARCH!!!

Ours will be around $16k. A lot gets factored into it.

so glad i posted this
i was putting aside $10K but i guess i should really consider $20K for closing costs on a house. . .

yikes!

Once you speak to a loan officer and get approved he/she will be able to assist you in closing cost estimates.

In this market, so many times the seller will cover 50% if not all of the closing costs, and it is often used as an incentive to seal the deal.

hth

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Posted by ant n tilde

so glad i posted this
i was putting aside $10K but i guess i should really consider $20K for closing costs on a house. . .

yikes!

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Yeah, I would do at least $15k.

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Posted by wifetobe

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Posted by ant n tilde

Just wondering if anyone could help me out. DH and I are looking at our first house - can't really put in an offer yet BUT we want to get used to the whole process.

So, we have a certain amount in the bank for a down payment but how much do we have to figure out closing costs to be? How does that work? What is it based on?

I don't want to go in thinking 'Oh I have $50K for a DP' but then realizing it is $10K for closing, and $40K for a DP

Thanks

---

Im going through this now. Closing cost will also include your first year Homeowners insurance and taxes. Mine will cost almost $20,000.

You pay the broker fees, atty fees, title costs survey costs. Your atty and broker will give you a breakdown of the 'anticipated charges' they should over estimate b/c you don't find out until the DAY OF THE CLOSING what the costs actually are. So bring more than they say just in case.!!

Im closing on my house MONDAY!! I CAN'T WAIT ANYMORE!!!

GOOD LUCK WITH YOUR SEARCH!!!

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Congratulations! Good luck with the closing!!

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Posted by ant n tilde

so glad i posted this
i was putting aside $10K but i guess i should really consider $20K for closing costs on a house. . .

yikes!

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for my co-op it was close to $10k. for a house it will be much more. by the way - your real estate lawyer should tell you this. fh does closings a lot (he did mine) and he always gives people a heads up on how much they will be so there are no surprises

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Posted by snwb08

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Posted by ant n tilde

so glad i posted this
i was putting aside $10K but i guess i should really consider $20K for closing costs on a house. . .

yikes!

---

for my co-op it was close to $10k. for a house it will be much more. by the way - your real estate lawyer should tell you this. fh does closings a lot (he did mine) and he always gives people a heads up on how much they will be so there are no surprises

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oh no we arent even up to that part. we are going to just SEE our first house. realistically we won't be ready for another two years - i just went to get some practice with the whole process

We want to stay in our neighborhood where houses start at $600K *SO* we need some more time to come up with the DP and all that. so depressing. . .

That's so exciting you're looking at houses!! Have fun! I would agree with most posters above that the closing costs will depend on the type of property your buy, how much, how much taxes are, etc... I would recommend reading some material by Suze Orman- She gives good advice and really helped me to set a budget before I bought my condo. Also, since you are looking to buy in the next 2 years- it's a great time to get all of your credit reports and make sure you can get the best possible rate. This will save you A LOT & get you a better rate for your mortage (and even a better type of mortgage).

Good Luck & again... have fun!!

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Posted by ant n tilde

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Posted by snwb08

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Posted by ant n tilde

so glad i posted this
i was putting aside $10K but i guess i should really consider $20K for closing costs on a house. . .

yikes!

---

for my co-op it was close to $10k. for a house it will be much more. by the way - your real estate lawyer should tell you this. fh does closings a lot (he did mine) and he always gives people a heads up on how much they will be so there are no surprises

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oh no we arent even up to that part. we are going to just SEE our first house. realistically we won't be ready for another two years - i just went to get some practice with the whole process

We want to stay in our neighborhood where houses start at $600K *SO* we need some more time to come up with the DP and all that. so depressing. . .

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gotcha. yeah we have a 3 year plan to save enough for a down payment. I didn't even think about closing costs. they are crazy. I want to stay in my neighborhood too but depending on house prices we might end up in LI... we'll see. good luck and have fun looking!!

they can be Ginormous...
look into ING they have low closing costs.