Funky Loan Quote. First time rental property buyer.

Member since 2020 · 9 posts · 5 votes

I received a loan quote from a lender. On a $211k house. The estimated closing close came up to $18k on a 30 year FHA loan. This included Loan cost, taxes and other government fees, prepaids, initial escrow payment at closing. Why am I seeing that the average is 2.35%? How do you add these on your analysis?

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
5y
@Christian Kim does the $18K include the down payment? Post a screenshot
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Christian Kim
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Member since 2020 · 9 posts · 5 votes
5y
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Jim Vanhorn
Investor · Roebling, NJ · Member since 2016 · 55 posts · 39 votes
5y
@Christian Kim I have purchased 4 houses in the last 3 yrs and I do not think I have ever paid any transfer taxes. Also the last house i bought was 350k and the seller paid transfer taxes were $2800. $4k seems like a lot for the buyer to pay on a 200k house. I would see if that can be pushed onto the seller.
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Account Closed
New to Real Estate · Madison, WI · Member since 2020 · 68 posts · 16 votes
5y
My FHA loan had really high closing costs as well. I just thought it was common for FHA loans because my last home purchase was not an FHA and closing costs were lower. I did just check my closing summary and like @Jim Vanhorn I did not pay any tranfer tax. The only thing listed under the tax section was the recording fees. Definitely find out more about that transfer tax.
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