nexgenjenith
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I have worked in the real estate/mortgage industry for 10+ years. The answer to your question will require some additional work on your part, as this will vary depending on where you are located (different states handle home closings differently, so there are different fees added to the costs). To get an accurate picture of what your closing costs will be, you need to first contact your lender and request a Good Faith Estimate. By law, they are required to provide this to you. However, due to many things that can be variables in your loan, this GFE will not always be 100% accurate and they can vary from lender to lender (i.e one lender may use and apprasier who charges $250, while another uses one that charges $350). You must also contact the title company, escrow company or attorney that will be handling the closing (again, this will be different depending on where you live) and ask them what they charge for their closing fees. Some other things to keep in mind is that depending on your financial status, there are programs available to help pay for your closing costs and you are also allowed to ask the seller to pay some of your closing costs. If you get and FHA or VA loan, there will be closing costs that you are not allowed to paid as per the government and so they default to the seller. Once you get the information from a lender and from your closing agent, you should have a more accurate idea of what your closing costs will be. What is included in the closing costs will vary also, but may include a flood certificate, tax certificate, credit report, loan closing fee, loan processing fee, underwriting fee, tax & insurance escrow amounts, prorated county taxes, prorated & advanced Home Owners Association (HOA) dues....again it will vary depending on your loan type, prpoperty type, closing agent type, local & state laws.....There is no way to estimate what these will be, as I have seen people pay $0 down & $0 in closing costs, and I have seen people come to the table with tens of thousands of dollars in closing costs...there are so many variables for each buyer (home price, credit rating, contract terms & negotiations..) that it is impossible to give a cookie cutter answer to this question. Your best bet is to first meet with a reputable lender and get "prequalified" for a loan. This will let you know what you can afford in a home. They can also assist you in participating in any down payment assistant programs if you qualify. Once you have that squared away, then seek out a reputable Realtor to help you locate the house you are going to buy. As a buyer, the Realtors services will cost you nothing (they get paid by the seller) and it is in your best interest to get someone who is familiar with the business in your corner to help write the contract & negotiate it's terms (an asking price on a home is not set in stone, and many times a seller is willing to pay closing costs, make repairs, etc...in order to sell their home. A veteran realtor knows the ropes of getting you the best deal/price). I would recommend that you do not use a realtor that is helping to sell a property you are already interested in, as they have signed a contract with that seller to look out for their best interest and get them the best price, so in my opinion it is a conflict of interest if a realtor is representing both sides of a transaction. If you are looking at buying a home and need additional guidance, you are welcome to contact me further, as I can walk you thru the process.
Lengthy, I know, but I hope that helps. |
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