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Is $7553 in closing cost too much for a $158,000 USDA loan for a home in Land O Lakes, FL?

The contract price for the home is at $158,000, but I am financing the closing cost into the loan. So the total loan amount is $168,300, that's including the $3300 USDA fee ($0 down). The broker also states that I would have to bring another $2531 at closing. Reserve prepaid cost is $5277. Yield spread premium 5% $8,250.

Mortgage broker fee is 2% ($3366). Admin fee $950. Appraisal fee $350. Survey $400. Processing fee $525. Doc fee $95. Settlement/Closing fee $540. Title Ins $25. Endorsements $162. Recording Fee $215. Local Tax/Stamps $589. State Tax/Stamp $336.

P.S. My first time buying a home so if I sound like I don't know what I am talking about, it's because I don't. I am just trying not to get ripped off. =(
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August 24 2009 - Land O Lakes
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Answers (9)

Best Answer
I'm very glad you came to Zillow before you went too far into the process!   Although the ZMM (Zillow Mortgage Marketplace) does not facilitate USDA 100% loans - you can certainly enter a loan request in the ZMM.  Just use 3/5% (5,530) for your downpayment and you'll get FHA quotes.  I would expect any of the FHA lenders will gladly originate a USDA loan for the same origination fees as they charge for an FHA loan. 

Once you select a few quotes from originators that seem OK to you, call or email them and let them know you'd like an RD loan, and ask them to confirm the closing costs and rate/points available for you.

I predict you'll save over $5,000 in closing costs from your initial GFE from your old broker, and likely over 1/2 % of rate, which will save you tens of thousands of dollars if you switch lenders.
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August 26 2009
stop now.
you just caught your agent with thier foot in their mouth; sure can bet, if you did not speak up, you would be paying 2 points compentsation at closing. trust is out the window.

many other qualified and honest USDA lenders looking treat you right and not make thier living on one loan a month.







 
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August 26 2009
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USDA would never allow YSP of 5%...I think that would just be a blanket statement.  At 5.5% on USDA it is probably 1-1.5% YSP with him charging you another 1% to get over his two percent figure.  It still sounds like alot IMO.  Most origination programs lump the Guarantee Fee in with the reserves so that is probably why that figure is so high.  I think Land O'Lakes area sends their loans to Ocala (right down the street from me) for underwriting.  If you want to call or shoot me an email I can get you the name and number of who to talk to locally.  All USDA is going to say though is they have no control over the rates and fees but may give you some better lenders to deal with.
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August 26 2009
Profile picture for babiigrlcarol
I spoke again to the mortgage broker today and he said he accidentally put 2% mortgage broker fee but it's only 1%. The interest rate is 5.5% 30 year fixed rate. The home was appraised at $165,000. Now I am wondering if it was really a mistake or done on purpose, since he did tell me his fees are 2% from the beginning of this process.
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August 25 2009
First mistake not educating yourself, some one  willing to take advantage of a consumer like that should be banned. Better yet go directly to your local USDA office to have them review your GFE.
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August 25 2009
This sounds very high!........what is the rate? You can only roll closing cost into the loan if the house appraised for more then the sales price. What was the appraises value?
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August 25 2009
I have to agree with them.  You need to find a lender that has usda
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August 25 2009
Gregorio is right.  That is ridiculous.  Its time to find another company.

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August 25 2009
You failed to mention the rate ... not sure I want to hear it based on what you have said so far, but ...  I will reserve comment until I get a full picture, but so far  ...

"Yield spread premium 5% $8,250.
Mortgage broker fee is 2% ($3366)" I sure hope that is a credit!

It makes me want to puke! 

What is your rate?
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August 25 2009
 
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