Are my closing costs too high for a Phoenix AZ purchase?

[Sunil Kapoor]

Hi All,

I am buying a townhouse in the Phoenix area for around 190K with 30% down.

My closing costs are around 10K, and I have great credit (over 800), which seems high, but I am a newbie so wanted some experienced eyes to help me.  This would be a rental property.

Do these closing costs seem reasonable?

Thanks for your advice!

[Stephanie Medellin]

@Sunil Kapoor  The closing costs look fairly standard to me.  The rate looks a little high, but I'm not in Arizona.  You are essentially paying points to get a lower rate with this lender.  You can eliminate the points and take a higher rate in most cases.  With the loan amount of about $133k, each 0.125% in rate equals about $10 more per month on your payment, so it's not a huge jump.  Most lenders charge around $1000 for a lender fee (underwriting / processing), and many will also allow you to "build in" the lender fee with a slightly higher rate.  

Most of the other fees are 3rd party fees and not going to the lender.  Some you can shop for, such as homeowner's insurance, home warranty, etc.  

Overall I'd say it looks fine, unless you can easily get qualified anywhere and can shop for a lower rate.  Don't forget there is value in good service and being able to get the loan closed with minimal headaches!