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Updated about 5 years ago on . Most recent reply

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Jose Delgado
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Does this seems reasonable?

Jose Delgado
Posted

Duplex $110,000

25% down

South Texas

Admin fee $680

Tax service $80

Origination fee $825

Processing fee $500

Underwriting fee $500

Appraisal,cedit report, doc preparation $1036

Escrow, survey, guaranty fee, Title insurance $1,977

Prepaids, initial closing payment $3,128

Total closing $8,724

Is this reasonable? Seems a little high. 

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Chris Coleman
  • Rental Property Investor
  • Washington, DC
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Chris Coleman
  • Rental Property Investor
  • Washington, DC
Replied

Yes, that seems high on a $110K price tag.  However, you're in South Texas, so its hard to say without knowing the Taxes and Insurance details.  Your Escrowed and Prepaids could simply be very high.

But it looks like there are a lot of individual fees.  A few I do not recognize/understand, maybe just terminology...

What is "Admin Fee" and "Tax Service"?  Is that the Recording and Transfer of Taxes?

What is "doc preparation"?  Is that simply the Application Fee?  Or is that attorney review (in Texas)?

Why do you have a "guarantee fee"? Is there a Guarantor for this purchase?

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