Mortgage fees review/advice for investment property

[Jonathan Tavarez]

Hi all,

I'm trying to purchase an investment property in Baltimore Maryland for a price of $72,000 in Baltimore Highlands.  When I was playing with some of the numbers my impression was that with a down payment of 20% and a closing cost between 2% and 5% (thinking I pay closing in full and there is no split with the seller) the total cash to close was going to be between $15,000 and $18,000.  To my surprise the bank came back with closing cost of $5,100 and Estimated Prepaids of $3,090 (as shown below).  The amounts of fees is crazy, is this typical?  Should I keep shopping around or is this expected?

Estimated Closing Costs
Items Payable in Connection with Loan	- This
Application Fees:	$570.00
Processing Fees:	$995.00
Appraisal Operating & Income	$75.00
Appraisal Comparable Rent	$75.00
Title Charges	-
Settlement or Closing Fee	$150.00
Closing Fee	$950.00
Owner’s Title Insurance	$172.80
Lender’s Title Insurance	$187.20
Government Recording and Transfer Charges	-
Recording Fees	$200.00
Transfer Taxes	$1,080.00
Additional Settlement Charges	-
Survey	$275.00
Pest Inspection	$75.00
Real Estate Admin Fee	$295.00
--- Estimated Total Closing Costs ---	$5,100.00
-	-

Estimated Reserves / Prepaid Costs
Items Required by Lender to be Paid in Advance	-
Daily Interest 15 Days @ $7.60	$114.00
Hazard Insurance Premium	$720.00
Reserves Deposited with Lender	-
Hazard Insurance premium 3 Months @ $60.00	$180.00
Property Tax 15 Months @ $138.45	$2,076.75
--- Total Estimated Reserve/Prepaid Costs ---	$3,090.75