Closing Costs

We just got confirmation that we are closing on our house April 4. Now, while I am very about this, I am nervous b/c my lawyer said to have 15,000 in closing costs and I am not 100% sure I have that. Do I absolutely need that much for closing? My bank attorney is my regular attorney too. Does the attorneys fees get included in that 15000? What about homeowners that I have to pay up front now? Sorry about all these questions, I am just in the middle of paying for a wedding in three months too so I am freaking out a little!
Thanks for all your help!
Liz

Re: Closing Costs

Sorry to say this, but I think you should plan on spending that. It all depends upon what you are buying, what sort of fees your lender is tacking on to the loan, etc. I had a good faith estimate for around 11,000, but there are other costs this didn't include such as the title searches and some things were very rough estimates. I've also read that the good faith estimate often underestimates the closing costs, so I wouldn't count on that either.

There was a thread on here not that long ago on this topic, and I seem to recall most people posted figures around the amount your attorney suggested.

Hope you can come up with this somehow, or the costs are lower in the end!

Re: Closing Costs

Closing costs usually include the your attorney fees, the bank's attorney fees, and the homeowners insurance premium that has to be paid up front. We are expecting to pay in the same range. Our lawyer put together a list of what he feels our closing costs will be under the worst possible scenario and based on that, $15k seems in line.

The major component of the closing costs are title insurance/searches, county tax on closing, reimbursement of owner paid taxes, taxes in escrow, bank fees, legal fees (buyer and bank), and interest owed for the month when the purchase takes place (which is higher at the beginning of the month but, then you have longer to make your first mortgage payment so it balances out).

Good luck!

Re: Closing Costs

our closing costs totaled $8200. Our good faith estimate was $9600. For us it was lower, but I would plan on the high end.

Re: Closing Costs

I would have that and then some at closing. we had to write several small checks at closing outside of the estimated costs.

Re: Closing Costs

LIHP gave us a breakdown of all the costs (EVERYONE will have their hand out) and it came to 14k and change.

What's a good faith estimate, and who is responsible for giving it to you? Is that something everyone can get, and is it binding within a few dollars?

Re: Closing Costs

Re: Closing Costs

I got a GFE that was a little over $11K and it ended up being a few hundred less, including my lawyer's fee.

ETA: Your closing costs also include taxes, if applicable, and a "prorated" mortgage payment for the month you closed in. For example, I closed December 29 so they tacked on whatever the mortgage for 12/29-12/31 was.

Message edited 3/22/2007 9:57:31 AM.

Re: Closing Costs

Sounds about right, I know I have to bring almost 16K to our closing in a couple weeks...EEKS

Re: Closing Costs

I would bring more if you can just in case. We found out the morning of the closing that we needed an additonal $5000 which was a total of about $20K -$21K. I was furious with my attorney and the broker. Thank god we had that but our bank out was wiped out!