What did your closing cost?

I looked up a one family house closing in NYC but there is a 'price range' for pretty much everything that factors in (lawyer fee, appraisal fee, recording fee etc...) all large ranges...looking to get an average so we have an idea..thanks

Message edited 3/5/2013 10:00:59 PM.

What did your closing cost?

If I remember correctly, it generally works out to about 4% - 6% of your mortgage amount

Re: What did your closing cost?

When I worked for Prudential, I used to give this link to buyers and it was usually fairly close to what you could expect on closing costs- Closing Costs

Re: What did your closing cost?

Message edited 3/6/2013 8:58:17 AM.

Re: What did your closing cost?

closing costs i think were about $20K probably a little less. That included the rest of my down payment, what i neede in my escrow. And i am pretty sure included the morgatge insurance i have to had (they make you pay it up frront)cause of either the FHA loan or cause i only put 3.5% down im not sure.

But i took an FHA loan out only put 3.5% down, my taxes are about 9500 and my house was under 250K.

I should say i didnt pay all of that either i was able to absorb must of the closing cost in the loan of the house.

Message edited 3/6/2013 9:17:36 AM.

Re: What did your closing cost?

Posted by DiamondGirl

Posted by Pray4Baby2010

When I worked for Prudential, I used to give this link to buyers and it was usually fairly close to what you could expect on closing costs- Closing Costs

this is the link I found, I guess I am in denial bc that is more than we thought

so a closing can really be like 10K? that seems like so much!

Re: What did your closing cost?

Posted by DiamondGirl

Posted by Pray4Baby2010

When I worked for Prudential, I used to give this link to buyers and it was usually fairly close to what you could expect on closing costs- Closing Costs

this is the link I found, I guess I am in denial bc that is more than we thought

so a closing can really be like 10K? that seems like so much!

Re: What did your closing cost?

Posted by Pray4Baby2010

Posted by DiamondGirl

Posted by Pray4Baby2010

When I worked for Prudential, I used to give this link to buyers and it was usually fairly close to what you could expect on closing costs- Closing Costs

this is the link I found, I guess I am in denial bc that is more than we thought

so a closing can really be like 10K? that seems like so much!

you can try and get the sellers to pay some of your closing costs when you are negotiating as well- I dont know that it always works but could be worth a shot

Re: What did your closing cost?

Posted by Century 21 Dallow - Christine Braun

Posted by Pray4Baby2010

Posted by DiamondGirl

Posted by Pray4Baby2010

When I worked for Prudential, I used to give this link to buyers and it was usually fairly close to what you could expect on closing costs- Closing Costs

this is the link I found, I guess I am in denial bc that is more than we thought

so a closing can really be like 10K? that seems like so much!

you can try and get the sellers to pay some of your closing costs when you are negotiating as well- I dont know that it always works but could be worth a shot

Closing costs can be 3% to 6% of the mortgage amount. Some fees are variable among lenders, and others are kind of set (appraisals, for example, will pretty much cost the same regardless of the bank). It also depends on the type of loan you do (FHA v. conventional).

But in the downstate NY area (city, LI), it is not at all common to negotiate closing costs to be paid by the seller. It's just not customary here, and anyone who is asking for that would really be setting themselves up at a disadvantage, esp. in a market that is becoming more competitive.

What is common is doing a seller's concession, which allows the buyer to roll the closing costs into their mortgage loan rather than pay them in cash, out of pocket. Even some of my buyers who have the money for closing in the bank choose to do a seller's concession, just so they have more cash after closing to work on the house, furnish it, etc. With an FHA loan, you can get up to 6% of the purchase price for closing, and with a conventional loan, it depends on what you are putting down (it can also be up to 6%, but if you are putting down less than 10%, I believe, it's only 3%).

The seller's concession really has nothing to do with the seller, other than the fact that it can be an issue with the appraisal. So if you are getting an FHA loan, and you agree to pay the seller $300K, you can make the purchase price $318K and use $18K for closing costs. But in that scenario, the house must appraise for $318K, not $300K. Also, the NYS transfer tax (which is $4 for every $1K of the purchase price) is paid by the seller, so the attorneys will shift the tax on the extra $18K to the buyer (so the seller doesn't have to pay the extra $72!). And the buyer's down payment is based off of the $318K. The higher number (including the closing cost allowance) becomes the "price" as you can only have one contract price. Everyone just agrees in advance what the seller is getting and what the buyer is using for closing costs.

Also, even if you do a seller's concession, there are still some items you would pay out of pocket at the closing table. The "closing costs" that you can roll in are costs associated with your loan, but there are other costs, such as your attorney fee, the attendance fee for the title closer, and incidentials (such as paying for the oil that the seller is leaving in the oil tank).

Re: What did your closing cost?

Posted by DiamondGirl

Posted by Century 21 Dallow - Christine Braun

Posted by Pray4Baby2010

Posted by DiamondGirl

Posted by Pray4Baby2010

When I worked for Prudential, I used to give this link to buyers and it was usually fairly close to what you could expect on closing costs- Closing Costs

this is the link I found, I guess I am in denial bc that is more than we thought

so a closing can really be like 10K? that seems like so much!

you can try and get the sellers to pay some of your closing costs when you are negotiating as well- I dont know that it always works but could be worth a shot

Closing costs can be 3% to 6% of the mortgage amount. Some fees are variable among lenders, and others are kind of set (appraisals, for example, will pretty much cost the same regardless of the bank). It also depends on the type of loan you do (FHA v. conventional).

But in the downstate NY area (city, LI), it is not at all common to negotiate closing costs to be paid by the seller. It's just not customary here, and anyone who is asking for that would really be setting themselves up at a disadvantage, esp. in a market that is becoming more competitive.

What is common is doing a seller's concession, which allows the buyer to roll the closing costs into their mortgage loan rather than pay them in cash, out of pocket. Even some of my buyers who have the money for closing in the bank choose to do a seller's concession, just so they have more cash after closing to work on the house, furnish it, etc. With an FHA loan, you can get up to 6% of the purchase price for closing, and with a conventional loan, it depends on what you are putting down (it can also be up to 6%, but if you are putting down less than 10%, I believe, it's only 3%).

The seller's concession really has nothing to do with the seller, other than the fact that it can be an issue with the appraisal. So if you are getting an FHA loan, and you agree to pay the seller $300K, you can make the purchase price $318K and use $18K for closing costs. But in that scenario, the house must appraise for $318K, not $300K. Also, the NYS transfer tax (which is $4 for every $1K of the purchase price) is paid by the seller, so the attorneys will shift the tax on the extra $18K to the buyer (so the seller doesn't have to pay the extra $72!). And the buyer's down payment is based off of the $318K. The higher number (including the closing cost allowance) becomes the "price" as you can only have one contract price. Everyone just agrees in advance what the seller is getting and what the buyer is using for closing costs.

Also, even if you do a seller's concession, there are still some items you would pay out of pocket at the closing table. The "closing costs" that you can roll in are costs associated with your loan, but there are other costs, such as your attorney fee, the attendance fee for the title closer, and incidentials (such as paying for the oil that the seller is leaving in the oil tank).

SO HELPFUL, thank you.

So if we decide to do this we should have the concession in place at the contract?

Re: What did your closing cost?

We did a partial seller's concession, the house only appraised for about $7,000 more than what we are paying for it, which sucks, we were hoping to roll all the closing costs in. So with that 7k already being applied to closing costs, we still have to pay about 12k out of pocket. We are doing an FHA loan, and this does not include the money we already put down for a down payment. Closing costs are brutal!