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Updated over 2 years ago,
First deal overthinking all details - Points and Closing Costs
I'm about to offer on my first deal, a duplex in a slightly expensive market but will cashflow fairly easily. I found a lender through BP who seems very knowledgeable, experienced, and likely someone I could grow but before I lock everything in, I can't help but wonder if I'm wasting valuable liquidity early on by paying $12k in closing ($7500 for 2 points). Should I be nitpicking closing costs?
The deal breakdown will be likely a $420k offer with 10% down @ ~6%. With Closing costs, mortgage is just over $2500 and rent for both sides is $3200 - $3500. Overall an excellent first deal I believe, but I'm already ready to find make my next offer so I don't want to chew up cash I might need on the next down payment.
Am I over analyzing while I'm trying to learn this process?