Closing Cost Tips
 

A couple of things I picked up during my house purchase....

I had heard the horror stories from all my friends. Make sure you have $3000.00 hidden away in a bank account somewhere because you will be hit with surprises at closing. Almost every friend told me this, and some have bought 2-4 houses now.

Another, some told me, was do not tell them you have $10,000.00 (or whatever) to put down because they will use up all of that, then hit you with another $3k at closing.

I was not going to get hit with that madness. So I went to a CU, versus a broker. I was approved for more, took a bit longer, got better terms that brokers had offered me, and then I got to the "truth in lending".

1. Double check your taxes.

On mine, it showed city $250 a month, and county $200.00. That was around $450.00 of my house payment estimate. Putting my annual around $5400.00 in property taxes. In reality, they are just under $2000.00. So my monthly is roughly $150.00, and the slight difference in monthly house payment is around $750.00 instead of $1150.00.

Kind of a difference there.

2. A number of the 'closing costs' are not paid at closing.

Your application fee. Appraisal. Some of the other things listed there you will pay upfront, and get back at the time of closing. You really need to keep track of these items and subtract them from the money you plan to bring. For example, I have to remove roughly $1000.00 from the money I thought I had to bring because I already paid it in Ernest money and prepaids.

3. The max you are going to get towards closing costs is 3%. No more cash back, or 6% etc like the good ole days. 3% is about your max.

4. Allowances you can still get. I am getting a $4100.00 in carpet allowance. Check will be cut to me AFTER closing. It can't be on any of the docs submitted on the loan. Apparently that is some new HUD restriction. The relo company did not want to do the carpet before I moved in, nor want to take that off the final price. So that was the deal.

5. You 3% closing cost is NOT covering any money you have to put down as a payment. I had my Realtor fight me on this for a week. The bank and I were both on the same page. 5% down has nothing to do with closing costs. The down payment is separate from closing costs, and prepaids. That 3% you get covers that kinda shit. Finally he got it after giving me wrong info.

Why are these things important?

Well, I had to have my 5% down. On top of that, I need whatever is not covered by the 3% in closing costs. Based on the original estimate, I was going to need around $4500.00 or somewhere in there. Versus the TRUE amount of around $700.00.

A small discrepancy.

:disgust

Yeah they screw the HELL out of you on closing..

We just were told here that the notary for a home sale is 9,900 DOLLARS...

Fuck that. who ever I buy from will discount at least 50% of closing costs.

Yep.

When I went to get quotes from two brokers, their shit was very different then running through my CU. My CU is pretty upfront on all their shit. They now have my vehicle, as well as SeaDoo, all business and personal accounts but 1, and my main personal credit card. However, they were just estimates at the truth in lending b.s..

I would rather have them come in lower, which they will by thousands, then be surprised by $3,000.00 like my friends were repeatedly. One of them lost their Ernest money because of it.

So without you having a clue, they would have "stolen" over 3 thousand dollars? What if you'd let them and then sued? lol

Not quite sure where you are coming up with stealing $3000.00 toots?

I was talking about full disclosure and misinformation some get told from mortgage brokers and Realtors. Furthermore, where some of my friends had not been given the facts, or did the additional checking on taxes and shit.

So they were surprised at closing and asked for $1500, 2000, 3000.00 check to be made out right there.

:disgust

Barefootsies = GFY'er of the month

Ok, so you're just saying to do your math carefully.

You said you THOUGHT you'd need $4500 but instead needed only $700. It just READS like you could be saying if you dont catch the errors, they'll just take the money anyway. (the stolen comment).

I mean, misinformation is lying.. lets not play games. If they'd lied and you signed, then you caught the lie, you'd sue for the money back right? So how is it not stealing to misinform you that I need $3000 more than I really do? hehe

My experience after two purchases and a refi is to use an actual bank and not a mortgage broker/lending tree/etc.

First time I used lending tree and got ass raped at the closing table, 2nd time I used a conventional bank and there were no surprises.

Ah ha. I see what you did there. :winkwink:

I have to say,..

I have found dealing with my credit union a lot easier. It takes a bit longer for approval SOME times. But you get what you want, typically approved for more, and better terms, less bullshit.

Some hard work and headache pays off in the end. Good job at doing your homework. :thumbsup

We have much different circumstances, but I'm going to closing Friday on a beach front property I just sold. With some work I had the buyer pay all settlement/closing cost, most of last years property taxes, 50% of stamps, and the state/county transfer taxes. I'll be paying $600 bucks total to close. People were telling me it was going to cost me thousands. Pfft!

Can't wait till Friday to get my wire!

Yup.

It took the better part of an afternoon going back and forth with phone calls and e-mails, but in the end it was a huge stress relieved. I still have more than $700.00 in the account they want just sitting there for 30 days.

But I wanted to make sure I was not crying in my beer for $4500.00 on the spot.

the loan fee's you can argue about yes

everything else your attorney should be working to get you the best deal possible.

Got pics of the house?

Posted them in other thread a day or so back.

dont pay them

congrats on the new place, I just went throught he same thing and fortunately it was pretty painless.. but i was lucky

Seems to be the case... luck

did u get the home inspected?

Yep.
Inspected both home, and pest.