Posted by Stan on July 22, 2007 at 22:25:45:
Does this delay closing? I recognize the need to be thorough, and I commend your tough approach.
Closing costs - Posted by Stan
Posted by Stan on July 19, 2007 at 23:01:53:
Is there a general formula to estimate closing costs before the deal goes to the title company for closing? I just closed on my first duplex, which was bought for $78,500 and closing costs topped 5,000.00. This caught me by suprise as I was expecting closer to $2,500.00/$3,000.00. Is this just my inexperience showing here or what?
Re: Closing costs - Posted by Ben Carmona
Posted by Ben Carmona on July 20, 2007 at 09:49:15:
Also depends what you and your broker worked out for the rate.
You may have received the lenders “par rate” meaning any compensation to the mortgage professional was earned upfront through the cost.
It might have been possible to select a higher rate in which case the broker could have earned some of his compensation directly from the lender which would have reduced your upfront costs. This works out well for short term holds.
The service provided and quality of advise you received and will receiving ongoing from the mortgage professional also needs to be taken into consideration. If you’re working with a broker that can help direct you to the best programs with mimimal issues throughout underwriting, that’s worth a million.
Ben Carmona
Re: Closing costs - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on July 20, 2007 at 08:18:12:
Depends on the State you are located in. Some states are high cost and others are low cost. You should have a GFE from your broker/lender. Additionally, you can request a “Pre Hud” from the Title agent.
Re: Closing costs - Posted by Stan
Posted by Stan on July 20, 2007 at 15:56:53:
The value of a good team and a good financial education is priceless. Thanks for your response and the information
Re: Closing costs - Posted by Stan
Posted by Stan on July 20, 2007 at 15:53:07:
I am in California, but the property is in Oklahoma. I appreciate your input. I didn’t know to request the “Pre Hud”. My education continues. Live and learn.
Re: Closing costs - Posted by Rich-CA
Posted by Rich-CA on July 21, 2007 at 21:23:37:
I always send the escrow agent a schedule showing when they have to get different documents to me if they want an on time closing and, no, I refuse any penalties if the schedule is not followed. One of the requirements is that I approve the HUD-1 before the closing date or there will be a postponement (not at my expense) while they make the corrections I require. So far escrow companies have been a little uncooperative and get quite upset when the lender approved HUD-1 comes back to them because I will not sign without the changes I list (they don’t get paid unless the deal closes either).
Re: Closing costs - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on July 21, 2007 at 07:15:17:
A good title agent will inform you of all the costs that are not lender/broker/appraiser related. Assume that there are “escrows” and have them account for them on the Pre-HUD. A good broker will work with you to tabulate the lender/broker costs.