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low closing costs/good rateslow closing costs/good rates
jjclark said: "I need a good referral.
I have been speaking with a mortgage company for almost 8 months now. I almost went with them, but the home I put a bid in on sold to another family.
I kept in touch with them because the guy I've worked with is very nice and informative. He ended up selling his company and joining up with another mortgage company. I have since found another home to purchase. I was interested in finding out about closing costs as I didn't want to be surprised when it came time to signing papers.
The seller agreed to pay $1k of the closing closts, which I like, but the mortgage guy told me closing costs could be up to 5% of the loan, which is over $6k! I'm not liking that one bit.
He said he didn't want to quote me a number and be wrong so he would atleast give me the max it could be.
I am not purchasing the house until January and I need to find a reliable company that will give me good rates and excellent costs for the closing.
Does anyone have any recommendations? I don't really prefer banks as their interest rates are higher than what the mortgage companies have been quoting me, but that could be the reason why the closing costs are outrageous.
Any suggestions?"
DonM said: "My house was listed at $82,900.00. It was on the market for 240 days so the seller discounted the price to $79,900.00.
I placed a bid for $79,200 and asked the seller to pay closing costs since I didnt have a lot to put down.
The seller is allowed to pay the closing costs up to 6% of the loan value. So They paid roughly $4750 for me and I was responsible for the rest about $2000 or so (upfront fees, escrow taxes, appraisal, insurance, etc..) Understand that most sellers want close to the asking price when paying closing costs.
So actually the house was $82,900. Discounted to $79,900. I offered $79,200. And they paid $4750 closing costs. So If I had the money to put down I would have bid around $74450.
This figure is roughly 90% of the original asking price. Most realtors add 10% or more to the house actual value to cover the commissions of the realtor and fees.
So I was in that range.
Hope this helps!"
MortgageMan said: "It depends.
Each state is a little different. In Illinois a title company charges around $500, in Florida they can be up to 4 times that amount. Also, the seller chooses the title company in Illinois so the mortgage guy could only guess at how much they will charge.
It also depends on what your mortgage guy is considering closing costs. is he including points, taxes, escrow reserves, lawyer fees, or not?
When you were approved did you lock a loan with him? If so you should have received Truth-In-Lending and Good Faith Estimate forms. The GFE will have a break down of the closing costs."