Hello BP Mates,

In literally every proforma I look at for buy\hold or turnkey investment properties from companies that market a "hand hold" approach for investors, closing costs are estimated to be $2,000-3,000. However, when getting quotes or pre-qualification letters from actual lenders, closing costs are always $5,000-$6,000. These are quotes I'm getting from brokers, major banks, and credit unions all charging about a point and have similar underwriting fees. I'm comparing properties that are anywhere from $85K to $300K. 

I'm wondering if I'm just doing something wrong, or if most companies are estimating extremely low closing costs or only partial closing costs, not including points, appraisal\inspection fees, etc.? I understand due diligence, but deceptive marketing is a major pet peeve of mine, even if "everyone does it". The total cash down advertised on these proforma are $2,000-$3,000 lower than what my lenders are estimating.

The reason this is very apparent to me is I haven't noticed any other major discrepancies. Insurance and taxes are pretty close to actual quotes, and typically they are very conservative on things like appreciation and rent rise.