Profile picture for asangster06

What would be our closing costs?

My husband and I have found a foreclosed home that we will be buying at $32,500, with the bank adding 3% toward our closing costs. We are doing a streamline 203k loan with repairs of about $17,500. We wanted our total loan to be $50,000. Our lender is saying that we would need to pay around $8,000 in closing costs. I don't understand why it would be so much. We don't need a consultant or permits. We also don't want to finance any mortgage payments. Please help me understand how that could equal $8,000!!!!!

Also its $1,927 in taxes and $1,000 for insurance. They said that would be included in the closing costs.
  • February 17 2014 - Lincoln Park
  • 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 (4)

The most accurate break down of the closing costs is going to come from the escrow company or closing agent.  They can prepare a form known as the HUD-1.  This form gives a detailed break down of the fees, and who is getting what.  Some of the fees are negotiable, some are not.  For instance your first years fire insurance premium is probably in there, transfer taxes, and recording fees are not going to be negotiable.    
  • February 18 2014
  • 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 PatrickDeMay
Being in the same situation as you, that seems about right.. 

There is the appraisal, flood cert, credit report fee, tax certification, etc.. around $500 for all that
Loan origination $1,200
Lender and owner title insurance can be around $2,000
Survey $250
Transfer Taxes $450
Record Fees $168
Daily Interest Charges (If you are buying mid-month) a few hundred

Add in your taxes, insurance and down payment and you can get to 8k easily.. And if there is PMI on your loan that can be a few thousand up front.. 

I was shocked too, when you look at the good faith estimate, it outlines your cost. Also know, you can negotiate some of it (like orig. charge or some of the other fees).. 
  • February 18 2014
  • 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 would ask for an itemized list of all of your fees, including pre-paids and escrows. The down payment is based on the "as completed" value and not the actual purchase price. Feel free to contact me with any questions.

Thanks,

Mark
  • February 18 2014
  • 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 Margo Borkin
These figures can only come from a mortgage lender. 203k loans do tend to have higher costs since there is more involved than a traditional loan. Escrows have to be set up. You can always get a 2nd opinion from another mortgage lender, but costs associated with a mortgage are based on several factors including your credit score and things only your lender can calculate. If you'd like the names of some of the lenders I work with who have very reasonable programs feel free to contact me through my profile ( can't publish names and numbers here ).
  • February 17 2014
  • 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.