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Having a minor freak out!!!
DH and I were just signing all the paperwork for the mortgage and stuff - we saw that our good faith estimate for closing is almost $20,000!!!! 
Someone please tell me that that # is really high!!!!!  
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Posted 5/20/07 9:26 PM  |
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Tfor3
LIF Infant
Member since 9/06 291 total posts
Name:
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Re: Having a minor freak out!!!
Wow - that is high. What are your taxes? If they are high, that may be the reason.
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| Posted 5/20/07 9:28 PM |
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Re: Having a minor freak out!!!
Are you going through a broker? The only reason I ask is that when we purchased the home we are in now we went through a broker and our closing costs were almost $18K and the house was in the $300's and the taxes in high $7's. Their are alot of fees that the brokers add on that a bank usually doesnt.
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| Posted 5/20/07 9:30 PM |
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Re: Having a minor freak out!!!
Yes - we are gong through a broker, but they waived the application and processing fees (total of around $1000)
The taxes are in the high 8's and we are putting 5% down. I know that this is probably the reason why they are so high, but it still did come as quite the shock!
I'm hoping and praying that they are over-estimated........ I seriously have major knots in my stomach right now! 
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| Posted 5/20/07 9:36 PM |
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~Melissa~
Member since 5/06 1462 total posts
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Re: Having a minor freak out!!!
I really hope they overestimated. 
Our closing costs were only around $5,000 here in CT.  Twenty grand seems reallllllllllly high.
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| Posted 5/20/07 9:38 PM |
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Re: Having a minor freak out!!!
Wow - $5,000! That's suuuuuuch a difference from here on LI!
I would be skipping to the bank if my closing was only 5K!
In the meantime, I am having a panic attack!
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| Posted 5/20/07 9:41 PM |
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LIMOMx2
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Member since 5/05 24989 total posts
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Re: Having a minor freak out!!!
That is really high. We paid $13,000.
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| Posted 5/20/07 10:17 PM |
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Diana1215
Living on a prayer!!!
Member since 10/05 29450 total posts
Name:
Diana
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Re: Having a minor freak out!!!
That is a very high number. Our house was 500K - we put down 60K and our closing costs were about 12K. Oh - and our taxes are 10K.
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| Posted 5/20/07 10:20 PM |
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Re: Having a minor freak out!!!
That seems really high. Call your mortgage broker tomorrow!
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| Posted 5/20/07 10:29 PM |
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LIMOMx2
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Member since 5/05 24989 total posts
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Re: Having a minor freak out!!!
Posted by scarletbegonia
Yes - we are gong through a broker, but they waived the application and processing fees (total of around $1000)
The taxes are in the high 8's and we are putting 5% down. I know that this is probably the reason why they are so high, but it still did come as quite the shock!
I'm hoping and praying that they are over-estimated........ I seriously have major knots in my stomach right now!
Dumb ? but why would putting less money down affect your closing costs?
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| Posted 5/20/07 10:31 PM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Having a minor freak out!!!
Posted by LaPetiteSirène
That seems really high. Call your mortgage broker tomorrow!
agreed! get a breakdown of what your paying for! i had a buyer freak once she got her CC amount and called her broker asap...turns out he was new and had a WHOLE bunch of stuff wrong! reduced her amount by about $5k.
eta: one thing to remember about closing costs is that they usually run anywhere between 3%-6% of the agreed on sale price.
good luck and keep us posted!
Message edited 5/20/2007 11:17:07 PM.
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| Posted 5/20/07 11:16 PM |
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MrsRivera
2 under 2...whew!!
Member since 2/07 9876 total posts
Name:
Beth
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Re: Having a minor freak out!!!
I've actually heard that 20 grand around here is normal. Someone I know recently paid just under $25,000.
We could have NEVER done that. We paid $2200 for closing.... 
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| Posted 5/20/07 11:20 PM |
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Jacksmommy
My love muffin!
Member since 1/07 5819 total posts
Name:
Liz
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Re: Having a minor freak out!!!
Ours were 15000, but honestly, things that my guy said were "waived" ended up being included somewhere else!
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| Posted 5/21/07 5:37 AM |
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PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
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Re: Having a minor freak out!!!
Our closing costs were estimated at $12K and we paid about $12,500 at closing.
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| Posted 5/21/07 8:14 AM |
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Re: Having a minor freak out!!!
Posted by 5ofClubs
Posted by scarletbegonia
Yes - we are gong through a broker, but they waived the application and processing fees (total of around $1000)
The taxes are in the high 8's and we are putting 5% down. I know that this is probably the reason why they are so high, but it still did come as quite the shock!
I'm hoping and praying that they are over-estimated........ I seriously have major knots in my stomach right now!
Dumb ? but why would putting less money down affect your closing costs?
I thought I remember someone telling me that once... although thinking about it now and looking at our GFE - it shouldn't matter 
Message edited 5/21/2007 8:15:08 AM.
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| Posted 5/21/07 8:14 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Having a minor freak out!!!
Posted by scarletbegonia
Posted by 5ofClubs
Posted by scarletbegonia
Yes - we are gong through a broker, but they waived the application and processing fees (total of around $1000)
The taxes are in the high 8's and we are putting 5% down. I know that this is probably the reason why they are so high, but it still did come as quite the shock!
I'm hoping and praying that they are over-estimated........ I seriously have major knots in my stomach right now!
Dumb ? but why would putting less money down affect your closing costs?
I thought I remember someone telling me that once... although thinking about it now and looking at our GFE - it shouldn't matter
the amount of money you put down does affect your closing costs because mortgage recording tax is charged as a % of your mortgage. so if two people buy a $500K house, but one person puts down more $$ than another, and has a lower mortgage, their mortgage recording tax would be lower.
$20K does sound high - mine were about $14K.
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| Posted 5/21/07 8:16 AM |
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MSeid
LIF Adolescent
Member since 11/05 805 total posts
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Re: Having a minor freak out!!!
20K sounds very high! I would have your attorney look over your GFE and explain the breakdown. If the bulk of it is the title report maybe you can ask the lawyer why.
We were estimated to have closing costs of 18K. We were told the night before to bring a certified check of 13K, and a checkbook just in case.We ended up getting a check for $500. So maybe 20K is OVER estimating just to be safe and it could be closer to 16-17K.
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| Posted 5/21/07 8:44 AM |
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LuckySV
LIF Adult
Member since 10/05 4675 total posts
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Re: Having a minor freak out!!!
Did you buy points to get a lower interest rate? That could cause the closing costs to rise.
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| Posted 5/21/07 10:14 AM |
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Re: Having a minor freak out!!!
Posted by npbride
Did you buy points to get a lower interest rate? That could cause the closing costs to rise.
Nope - no points
My stomach is still in knots!
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| Posted 5/21/07 10:14 AM |
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kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
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Re: Having a minor freak out!!!
it does seem high, but your purchase price is probably very high as well. We paid around 8K for closing costs but we purchased our place for $272K. Its usually a % of your purchase price
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| Posted 5/21/07 10:18 AM |
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ckone
LIF Adult
Member since 8/06 3014 total posts
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Re: Having a minor freak out!!!
Are you paying points on your rate? We did and almost payed 9K in points - don't ask. That was a huge mistake that we made.
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| Posted 5/21/07 10:18 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Having a minor freak out!!!
I agree with having your attorney looking over your GFE, but remember your closing costs are based on many things, the biggest being the mortgage amount.
It also depends on what time of the month you close. We closed in the beginning of the month, so we had to prepay a lot of interest. The good side to that is that our first mortgage payment is not due until July. Bad side was we had to pay more at the closing.
Also if you are paying any points to reduce your rate that will be included in your closing costs.
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| Posted 5/21/07 10:48 AM |
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shiv
Twinsanity!!
Member since 5/07 4747 total posts
Name:
Shiv
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Re: Having a minor freak out!!!
Posted by SweetTooth
I agree with having your attorney looking over your GFE, but remember your closing costs are based on many things, the biggest being the mortgage amount.
It also depends on what time of the month you close. We closed in the beginning of the month, so we had to prepay a lot of interest. The good side to that is that our first mortgage payment is not due until July. Bad side was we had to pay more at the closing.
Also if you are paying any points to reduce your rate that will be included in your closing costs.
Right, typically your mortgage broker will base your estimate on a closing date that's in the middle of the month so if you do close at that time, you know how much you will have to prepay in mortgage interest and HO insurance. If you cloe towards the end of the month or on the 1st of the month, your closing costs will be less. In addition, if you put less than 20% down, NY requires you to put 3 months of RE taxes and HO insur in an escrow account to be held until you either refinance the home and put at least 20% down or until you sell the home. This protects the state from losing taxes and insurance if your home forcloses. Also, with less than 20% down, you have to pay mortgage insurance, which can either be lumped into your motgage payments or paid in one lump sum at closing. These additional costs can easily add up to $20K. But this is probably the highest you would have to pay. I would go through each amount on the GFE with your broker so that you understand exactly how they got to each number. Most of the time, they are being conservative and the actual costs will be less.
Our costs were @ $18K with less than 20% down, but we uped our down payment to 20% and are now around $11K.
Good luck!
EFS
Message edited 5/21/2007 11:31:54 AM.
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| Posted 5/21/07 11:24 AM |
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tray831
Dee-licious!
Member since 3/06 5355 total posts
Name:
His Baby
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Re: Having a minor freak out!!!
My costs weren't too far from yours but I paid a little more than a point.
I also noticed the Title company was very high. Check and see what your title co. is charging you on all their fees. Does the $20K also include your lawyer's fees?
And if the house has oil, are they guesstimating what that amount is for what you owe the owner?
But I will be honest...........I had a massive panic attack too when they told me my estimated costs. So glad its over with
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| Posted 5/21/07 11:26 AM |
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Gertyrae
Peace out Homies!
Member since 5/05 20046 total posts
Name:
Gerty ®
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Re: Having a minor freak out!!!
I would double check with you lawyer, what the others have said is true, but they also sometimes overestimate. They told me 16K for our closing and it ended up only being 12K.
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| Posted 5/25/07 6:04 AM |
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