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Updated 11 months ago on . Most recent reply

User Stats

35
Posts
7
Votes
Elton Tate
  • Investor
  • North Carolina
7
Votes |
35
Posts

DSCR Loan Closing Cost

Elton Tate
  • Investor
  • North Carolina
Posted

Happy Wednesday!

I hope everyone's week is either going as expected or better than expected. I have questions regarding the DSCR loan process and the associated closing cost. I'm reviewing the loan document, and I noticed that the total closing cost is $12,374. The lender mentioned he overinflated everything, so there are no surprises, and that I should expect a much cheaper final closing cost. The property is located in Detroit, 48224 area. Out of all the things that trip me up in real estate, I think this is the main culprit. The numbers appear to be double what they should be, but maybe I'm mistaken. I want to be more confident when reviewing loan documents.

  • Elton Tate
  • Most Popular Reply

    User Stats

    2,270
    Posts
    1,278
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    Jason Wray
    • Banker
    • Nationwide
    1,278
    Votes |
    2,270
    Posts
    Jason Wray
    • Banker
    • Nationwide
    Replied

    Elton,

    When a lender is doing a loan under $100K expecg higher rates/fee's. DSCR typically has between 2.00-2.75% points. Your points seem a little high but again it's an $80K loan so its a price you have to pay for those smaller loans.

    Other fee's look padded and transfer taxes can sometimes be split or paid by seller.

  • Jason Wray
  • [email protected]
  • 727-637-4289
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