Closing Costs?

Question

What does this phrase refer to exactly? Where is the money going to and how much, on average (for whatever niche) do you spend on this step?

Thank You!

Mark Langdon · Answer

I just closed last week on a Multi-family in Northern NJ. Here were my costs to evaluate and also the closing costs using a bank loan. Very Expensive.

Home Inspection$667.00

Termite Inspection$0.00 (Included in Home Inspection Fee)

Radon Cannister Inspection$0.00 (Included in Home Inspection Fee)

Oil Tank Sweep$250.00

Home Appraisal Fee$575.00

Survey$0.00 (I made the sellers do this. They paid $ 2500)

Subtotal Our Fees to evaluate/Inspect the Property$1,492.00

Settlement Charges Breakdown

Loan Origination Fee$805.00

Credit Report from Loan Company$14.00

Tax Service$90.00

Flood Certification$8.56

Title Services and Title Insurance$2,885.00

County Clerk Govt Recording Fee$420.00

Credit Back for Recording Fee as we have connections (-$150.00)

Attorney Fee$1,500.00

Subtotal HUD-1 Page 2 Settlement Charges $5,572.56

Andrew Bosworth · Answer

What about when you SELL?  Every place is different, but what is the average cost of sale (as a percentage) to use when calculating closing costs?

Jeff Lee · Answer

I purchased a foreclosure with 100% cash and my closing costs (includes titles insurance) were about $900. I should've shopped around to get it down to $700.

Joe Impagliazzo · Answer

@Isaac Schulman

Basic closing costs are going to be the lender costs (origination points, discount points, appraisal, processing fee, credit report, flood cert, etc) and Title attorney fee's (title insurance, title search, closing fee, mortgage recording fee's, taxes etc).  Many of these fee's are based off the loan size and state/county taxes, so it is difficult to tell you an average without knowing more information.  Unfortunately I can tell you NY is probably the most expensive state for closing costs in the nation, there is a large tax they charge.

Jeff Greenberg · Answer

Remember closing costs are more than just the lender's closing cost. See the items previously mentioned.

Anthony Pinzone · Answer

I know this post has been dead for awhile, but for anyone else looking in the NY area, my estimated closing costs on a Condo I just had an offer accepted on are much, much higher, so I'd highly recommend requesting the seller pay all or part of your closing costs.

Agreed Price: 155,000

Taxes: 4300/year

HoA: 300/month (not sure if this matters but all my lenders ask for this)

Estimated closing costs have been between 8600 - 9200 from two different lenders so far. I have a few calls out for more estimates, but figured this would help someone out. I had no idea they were going to cost this much... I'm tempted to cancel the deal. :(

Cheryl P. · Answer

@Zach Adams Late to this post but definition of earnest money is:

"An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer's down payment. If the deal falls through, the buyer may not be able to reclaim the deposit."

Source: http://www.investopedia.com/terms/e/earnest-money.asp

Zach Adams · Answer

I'm in the process of vetting my contract to purchase another SFR (yes!!) and told my agent/pm that I would agree to the sellers price as long as they paid all closing costs and replaced deck. They agreed to pay $4600 for closing costs which I'm expecting in GA will be $4000 (3% of 135k). What is the $1000 earnest money I have to put down? I remember this years ago, but what is it for?

Account Closed · Answer

@Isaac Schulman

I agree with @Jeff Greenberg  , 3% of purchase price is a is a safe figure to use for budgeting closing costs.

Lemaun Lancaster · Answer

so 3% is standard for closing and it depends on the loan amount .

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