10% Closing Cost in Memphis?

[Chris Ono]

Hi everyone, We're looking to purchase 2 turnkey properties from Memphis Invest, but the mortgage company that was recommended (not by them, but they work with them regularly) is charging 10.1% to purchase price in closing cost. Most of what we're finding is an expectation of 4-6%. Are we misunderstanding something or does this seem outrageous? Thanks for reading.

[Caleb Heimsoth]

Everything you list is pretty standard. The loan origination charge is kind of high. I paid 1500 on my first one and thought that was too high and haven’t paid close to that since. The second one waived their lender fees for me (special promotion at the time).

Also your appraisal is kind of high too but not my much. Most of my appraisals have been about 500 five or take a hundred bucks.

Finally the percent to loan amount value is largely irrelevant in my experience. If you’re buying a single family home in the 70-200k range it’ll probably be 5k closing costs per transaction.

My closing costs on two different properties with values nearly double of one vs the other were essentially the same.