4.6K closing cost (excl. prepaid) on 62.5K property, seem high?

[Allen L.]

Hi guys,

I got an initial disclosure from a lender for a loan on a 62.5K property. The terms are 30 yr fixed 5.375%.

Here is the snapshot of the closing costs excluding prepaids/escrow.

I confirmed with the lender that the appraisal fee is $700 (400 appraisal + 300 rent schedule). Other than that.. it seems high even ignoring the loan discount points. I was expecting maybe 2K closing on a 62.5K property. Which of these items do you think is out of normal range for this property?

[Kevin Sobilo]

Is this a multi-family? Is that why there is a separate charge for the rent schedule? 

To me these fees do look high. The recording fee for the mortgage for example. Recording should be by the page and if the deed which might be 4 pages is $38, then the mortgage document would have to be 40-50 pages to be that price. 

I also typically pay $150 for a settlement fee, which I think it low. I would guess that $250 is more typical. 

I would go to a lawyer or title company and get them to estimate the closing costs. Most of these costs are closing costs not lender costs and you should be able to choose whomever you want to handle the closing. Don't let the lender steer you to someone who may be overcharging you. Its your choice who does the closing.