Closing Costs

I am looking into buying a home in the Houston area. It is a $55,500
home. The mortgage company I am working with told me I should do an FHA
loan as my credit isnt exactly perfect and I didnt want alot of out of
pocket expenses. Well, I need to put 3% down which is fine and my
interest rate would be 5.75%(much lower than a conventional loan). The
seller is willing to pay 6% towards closing costs which works out to be
around $3330.

My question is about the closing cost. It seems a bit high. They want
$5055.23 for closing which is on top of the $1665.00 I have to put down
and the $500.00 earnest money I put into it.

What should I do??

Re: Closing Costs

In article <>,
"mgd_master" <> wrote:

> I am looking into buying a home in the Houston area. It is a $55,500
> home. The mortgage company I am working with told me I should do an FHA
> loan as my credit isnt exactly perfect and I didnt want alot of out of
> pocket expenses. Well, I need to put 3% down which is fine and my
> interest rate would be 5.75%(much lower than a conventional loan). The
> seller is willing to pay 6% towards closing costs which works out to be
> around $3330.
>
> My question is about the closing cost. It seems a bit high. They want
> $5055.23 for closing which is on top of the $1665.00 I have to put down
> and the $500.00 earnest money I put into it.
>
> What should I do??

How about posting a list of the closing costs. For a
$55K house, assuming you are paying no points, the loan
fee should be under $1000, and I'd expect the rest of the
closing costs to be less than $2000. Unless something
funny is going on, your closing costs sound about double
what they should be.

-john-

--
============================================================ ==========
John A. Weeks III 952-432-2708
Newave Communications
============================================================ ==========

Re: Closing Costs

On 4 Aug 2005 19:18:36 -0700, "mgd_master" <>
wrote:

>I am looking into buying a home in the Houston area. It is a $55,500
>home. The mortgage company I am working with told me I should do an FHA
>loan as my credit isnt exactly perfect and I didnt want alot of out of
>pocket expenses. Well, I need to put 3% down which is fine and my
>interest rate would be 5.75%(much lower than a conventional loan). The
>seller is willing to pay 6% towards closing costs which works out to be
>around $3330.
>
>My question is about the closing cost. It seems a bit high. They want
>$5055.23 for closing which is on top of the $1665.00 I have to put down
>and the $500.00 earnest money I put into it.
>
>What should I do??

run from the deal

Re: Closing Costs

"mgd_master" <> wrote in message
news:

> The seller is willing to pay 6% towards closing costs which works out
> to be around $3330.
>
> My question is about the closing cost. It seems a bit high. They want
> $5055.23 for closing which is on top of the $1665.00 I have to put
> down and the $500.00 earnest money I put into it.
>
> What should I do??

Who is "they"? The mortgage company?

Before signing anything, take the paperwork to a Title Insurance company in
your area; there will be several, so ask them all for a price for the
closing costs. Ask them if it's possible for them to provide the closing
procedures instead of the mortgage company. I think you'll be surprised (if
not shocked) at the difference in closing cost prices.

Take that information back to the mortgage company and bargain with it, or
if the T.I.'s said they'll handle it, simply give them your business. If the
mortgage company is so greedy that they won't pass the deal w/o their
exhorbitant closing costs as frosting on their cake, get another lender.

Re: Closing Costs

On 5-Aug-2005, "gretchen" <> wrote:

> > My question is about the closing cost. It seems a bit high. They want
> > $5055.23 for closing which is on top of the $1665.00 I have to put
> > down and the $500.00 earnest money I put into it.
> >
> > What should I do??
>
> Who is "they"? The mortgage company?
>
> Before signing anything, take the paperwork to a Title Insurance company
> in
> your area; there will be several, so ask them all for a price for the
> closing costs. Ask them if it's possible for them to provide the closing
> procedures instead of the mortgage company. I think you'll be surprised
> (if
> not shocked) at the difference in closing cost prices.
>
> Take that information back to the mortgage company and bargain with it, or
> if the T.I.'s said they'll handle it, simply give them your business. If
> the
> mortgage company is so greedy that they won't pass the deal w/o their
> exhorbitant closing costs as frosting on their cake, get another lender.

Keep in mind the OP said they had not so good credit and still their rate
was under 6%. They may not have charged points and are adding fees to make
it work. Another lender might just up the interest rate. I'd like to know
how bad their credit really is that the went with an FHA.

--
Warmest regards,

Steve Horrillo, Realtor / C.Ht. =^..^=