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Need your help!!! on the rates quoted by the builder's lender to which i'm getting 3% credit

Processing fee - 595
UnderWriting fee - 395
funding fee - 150
attorney fee- 150
appraisal fee - 400
credit report fee - 65
tax service fee - 80
flood certificaiton - 25
lender inspection - 75
closing escrow fee - 275
8.1 endorsement 100
courier fee -  75
email loan doc - 25
administration fee - 100
state gurantee fee -10
tax certificate - 45
eRecording fee - 6.0

Owners Title Insurance - 2,561

Survey - 460
Mortgage Recording Charge - 112
Deed Recording Charge - 45

Hazard Insurance Reserves 118.75 x 3 months = 356.25
county property tax reserves 660x 3months = 1980

Daily Interest Charge 28.697 x 15 days = 430.47

Hazard Insurance Premium = 118.75 x 12 months = 1425.00
HOA start up fee  = 300

PURCHASE PRICE 290,000    property tax around 2.64%
Estimated Prepaid items/reserve- 4162.03
Estimated Closing Cost- 6049

I am trying to figure out what to negotiate out in fees? it seems its too much. need your input!! thanks in advance.


  • October 05 2012 - Garland
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Answers (6)

There is a little extra in the lender fees but nothing really outrageous.  NOt an expert in Texas so I will assume the "title/settlement" fees are pretty standard.  You mentioned that you are getting a 3% credit towards closing costs.  That will basically cover everything but the homeowner's premium.  The main thing you want to concentrate on is the rate.  You want to make sure the rate is fair and over inflated to pay for the 3% credit that they are giving you. 
  • October 06 2012
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That is a lot of information but what is the interest rate?  Does the sales contract state that you are to pay the Owners Title Policy? The lenders GFE would show it as your fee, but sales contract language would be what applies. Most purchases in TX have seller paying Owners Title policy but not uncommon on new home for buyer to have to pay. Read the contract.
Fees seem reasonable and may be $150-$200 higher than the low end. It appears that there is a origination or discount fee being charged if closing cost are $6,049, so interest rate being charged is important to compare.
Is this a case of builder giving 3% if you use their lender and zero if you don't?
  • October 06 2012
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my credit score is 678, and interest rate the quoted me was 3.75% and with lender paid PMI which is 0.5% more.

income is about 8,200+ monthly on W2

thanks
  • October 06 2012
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I'm thinking of using the 2.5 % of the 3% incentive towards purchase. (0.5 % + realtor comission 2.5% = 3%) towards the closing costs.
  • October 06 2012
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Now something may be missing.  Getting that rate at a 678 FICO score and LPMI seems like a stretch.  If you are saying the LPMI is adding .5% to the rate that means you are getting 3.25% at a 678 Credit score.  I would argue that is tough to do with 25% down and a 800 score.
  • October 06 2012
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sorry to confuse you. the rate quoted was 3.75% and so LPMI would bring it to 4.25%
  • October 06 2012
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