Profile picture for por1

Closing cost on a new house

what is the normal/approx closing cost for a new house $470,000.

what is the approx closing cost for a foreclosure house $450,000.

What is the difference?
  • December 12 2010 - Ardenwood
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (15)

Profile picture for davhel
If the builder's lender offer $20,000 closing cost incentive which aslo cover:

1) upcoming due property tax, about 9 months
2) 1 year homeowner insurance
3) 12 HOA dues

The loan has no prepayment penalty.  If I refinance or payoff the loan in 3 months.  Can the lender take away #1, #2, and #3 from me? 
  • December 30 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for JDERP
It's really difficult to get an exact figure but you should estimate 3-3.5% of the sales price for your closing costs. The lender and realtor should be able to provide you with a close figure. The lender will calculate your real estate taxes, and any other fees involved to get your closing cost number.
  • December 20 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

With builders trying to rid off their properties as soon as possible they are giving a lot of incentives, closing cost 3-3.5% , upgrades and a good interest on your loan.( Price matter, you will pay more). Foreclosure home , you ask for closing cost ( same 3 - 3.5%)  price normally is way less expensive.
  • December 18 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for davhel

Thanks.

When I bargain the purchase price with the builder, the builder gave me more closing cost incentive instead of reducing the purchase price.  After estimation, I believe I still have about $8,000 left unused but I cannot use it to apply to the purchase price!  The builder would not pay me the unused balance of the closing cost.  I do not want to use it for options or buying down the rate, what else can I spend the money?

Where can I find the list of fees that I can fully utilize my closing cost incentive? 

By the way, the mortgage company wants me to payoff my auto loan in order to apply a loan for this house.  Will this tie to the house purchase?

  • December 16 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

@davehel - You can only use a closing cost credit from a seller to pay for lender, title, escrow, tax, insurance, home owners assocation and any other fees or costs tied in with the financing and purchase of the home.  You can not use the credit to pay off items like credit cards or auto loans.  Please let me know if you have any other questions, I am here to help in any way I can!
  • December 16 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for davhel
If you are in Ardenwood, Fremont, CA, then we are on the same boat.  The property tax rate is 1.1%.

I also want to know how to use the closing cost incentive wisely.  Other than use it to pay fee for Escrow, title, home insurance, property tax, buying down interest rate, upgrades, can we use the the closing cost to payoff previous loan, like auto loan...Can someone help? 

Anybody can recommend a good home inspection company in this area.  Thank you. 
  • December 15 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I agree with Nick. There's no solid number to go off of until you consult with all the parties involved.
  • December 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

We are seeing a range from 3% to up to 4.5% but it is impossible to attach a solid figure without talking to a qualified mortgage professional. They can work up a solid estimate in no time flat! Also, call 2 or 3 lenders because they will all have competing programs. Just because one lender tells you they will end up being "4%" doesn't mean that's the case across the board. Make sense?
  • December 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

There will not be a large dollar amount difference between 470k and 450k in basic closing costs.   You will need to research taxes and potential insurance amounts to get a solid figure.  Your total closing costs can also depend on if  you are paying origination or discount points on your interest rate.  You can contact me through my zillow profile and I can help you get accurate numbers together.  Thank you!

  • December 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

a good rule is just to just estimate approx. 3% on the purchase price.  The closing costs, including everything come out to about that much.  The difference comes from the purchase price.
  • December 13 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The only real answer is IT DEPENDS. It depends on how much money you are putting down.  It depends upon WHERE the property is located. It depends on the property taxes which vary widely throughout the country.  Where I am located on Long Island, New York, real estate taxes and therefore the escrow for them is so high, the closing costs run about 6% of the mortgage amount.
  • December 13 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

A good approximation to go by for closing costs is about 3-3.5% of the purchase price. Sometimes new home closing costs can be higher. Just keep in mind anything not paid up front will usually be rolled into your closing costs. Many things can be billed to escrow as well, such as inspections. You can reduce some of your closing costs by asking the seller for concessions or to pay for warranties and other fees defined in your offer/purchase contract.  
  • December 13 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for SeanGlaze
Closing cost main 3 items are broken down to:

Escrow Fees

Title fees

Loan or lender fees

You may have some other costs but if you put those numbers together you should have an idea of the approximate closing costs.

If you are looking for total down you will have to add your down payment into this number.

The only way the closing cost would differ from buying a new house or a bank owned is if you financed the new house through the builder and they gave you some credit towards closing costs but the same credits can be received through buying a bank owned house.

As Ken pointed out below there are many factors that go into closing costs but the main 3 above are the bulk of the cost on a standard purchase.

Contact me via my Zillow profile if you would like to have a move detailed discussion about this.


  • December 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for por1
I put the location as "Arderwood", any idea?

  • December 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Closing cost comprises of various line items that vary from one deal to another and also varies according to the county and the city where the property is located.   Hence, It is impossible to even estimate what the closing cost would be and easily the numbers could be skewed in thousands.

Ken Vasan
Broker

  • December 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.