Closing cost looks high

[Joel Betances]

hi everyone,

I just got accepted for a property and looking at the estimates, the closing cost seems a little high or is it just me. 
loan is for 68,000 at 6.625 interest rate. Closing cost $9,989

[Chris Seveney]

Quote from @Joel Betances:

hi everyone,

I just got accepted for a property and looking at the estimates, the closing cost seems a little high or is it just me. 
loan is for 68,000 at 6.625 interest rate. Closing cost $9,989

 While the $10,000 in closing costs appears to be high for a $68k loan, realize close to $3500 of it is taxes and prepaids.Of the $6,000 that are true closing costs, $2000 you can shop for  (which I do not think you will do better). Services you cannot shop for seem high ($800/appraisal - is this a rural area)?  Some loan officers can comment more on those. Then you have the points and underwriting and processing fee which some may only have one.

Overall, there are a few items in there that seem a bit high but in the grand scheme of things they are not way overblown or super high. The lower dollar loans have a very high percentage in closing costs because the cost to underwrite a $500k loan is the same as a $75k loan unfortunately. Same for many of these costs (except title insurance).