Updated almost 2 years ago on . Most recent reply
DSCR Loan Closing Cost
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.
Most Popular Reply
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.