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 |
