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FHA 203k Mortgage Closing Cost is too high? Need suggestions on neg. on some of these fees!

total loan amt $ 213, 383 & Rate: 4.5%, financed MI funding fee $2,113.83, Application $725, Lender Appraisal fee $495, Tax services $66, Compliance Audit/Control $ 90, Survey (option) $450, Lender's coverage $528.46, Title Exam $ 285, 
owners coverage $ 1500, recording fee $390,  Hud consultant (up front) $ 1000,
earnest is due asap ($2000), and PREPAID EXPENSES $4588.32
Total $ 13354.32????  This seems a bit high.  I am about to scream NO!!!! to this deal.
Oh, the lender added 15% for escrow into the loan.  He also added 6 mortgage payments into the loan as well.
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March 26 2012 - Englewood
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Answers (7)

Best Answer
Keep in mind that the Financed Funding fee is just that financed into the loan.  Also the earnest money is not a closing cost.  It is part of your down payment.  Overall I would say the costs may be a touch low as I do not see any mention of attorney fees.  The rate may also be a touch high.
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March 26 2012
If closing costs begin to escalate, you may want to ask about rolling them into the note. You will need to make sure your down payment reflects this change. Either way, you're not going to be able to avoid them; each closing cost  is necessary and gives you some layer of protection. I.E. surveys, lawyer, insurances
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May 01 2012
WIth any FHA loan, there is a Up Front Mortgage Insurance Premium.  Typically that is financed into the loan.  Yes if you can move the closing up a few days you could save yourself $700.  Keep in mind though, your first payment would now be July 1.   While rates have climbed a little bit since my last post on the subject, I can not imagine your rate being any higher than 4.25%.
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April 01 2012
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Option ::  The consultant fee is optionally financed. You can reduce your required cash by paying the consultant "outside" of the loan closing costs.

Gary Smith
203K Consultant  
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April 01 2012
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Financed Funding Fee?  What is that and who is that? Why do  i have to pay $2000 for that.  If the loan is lower than $200k, would they reduce that fee?

I am getting really upset with this.  I guess they don't want my business.
Thanks Joe... You're the best!
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March 26 2012
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Oops.. Let me clarify here.  The loan does include the acquiring of the home & land.

The prepaid expense was totally unexpected but I knew something was coming.  One of the things in the prepaid that I am screaming about is the interest.  My closing date is June 2.  the LENDER said any time you close on a loan you pay the interest from the day you close until the end of the month.  Should I move my closing day May 30?  I could definitely save $700 dollars.

The attorney fee (sorry I left it out and it's included in the total above). $1200 (He is a bit expensive BUT HE IS really good and very knowledgable.

Anything else looks weird or could I ask the lender for help?

I know the seller is not going to budge.  Or maybe he could come down $3k on the price?

Thank you All for taking the time to read this.  You guys (and gals) are the best!!!!




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March 26 2012
Hello.  You did not mention the cost of renovation.  If it is < $35,000 you can avoid some of these charges.  let me know what the sales price is and the renovation cost.
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March 26 2012
 
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