Seeking Help with Mortgage/Closing Costs Questions

Updated on March 11, 2012
E.S. asks from Naperville, IL
12 answers

Any mortgage brokers out there who have a really good and comprehensive list/template/description of closing costs from both a buyer's and seller's perspective? My husband and I are considering a move and are trying to work through the finances ourselves prior to sitting down with a broker. One thing we know is that the sum total of all of these fees, credits, commissions, etc., will ultimately determine how much we have to use as a down payment, which then determines loan amount, monthly payment, etc. So we would like to understand and be able to estimate as closely as possible when looking at different homes and scenarios. We'd also like to understand which of these fees and credits actually do affect the down payment, and which will simply require additional cash at closing (i.e. I know there are "paid outside of closing" costs).

We're fairly analytical people and understand the pro-rated tax credits (we escrow) and mortgage interest, etc. and can even do the calcs ourselves... we just need some guidance on what ALL of the potential costs could/will be (again, both buying and selling costs), and how these affect the bottom line.

We have only done this once in the past, on the buy side, and are still in our "starter" home, so we don't have much experience with this or a strong relationship with a broker. We know things differ depending on where you live and type of loan, among other things. We are in Chicagoland (Naperville), and are looking at 30-yr fixed, conventional and FHA loans. So to the extent any of the fees or credits differ between FHA and conventional it would be helpful to know this also.

We realize it's not possible to be 100% accurate between estimate and actual closing costs, but we imagine those of you who are really good at what you do can break it down pretty well and get pretty close. We have done the Google searches and it seems every list out there has one or two items the last did not... Is there a specific website that you would recommend, or perhaps a list you can share?

Thanks - and sorry such a long question!

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So What Happened?

Thanks to all who responded. I think some of you may have misunderstood my question - I was not looking for an actual dollar amount for closing costs, I was looking for a list of the charges (Jackie, your link was very helpful!). Obviously I know much of the actual charges are determined by credit score, DTE ratio, loan type, locale, etc. Further, I don't think we are "overanalyzing" anything about this decision. The more information we have prior to jumping in to this process, the better. The last thing we want to do is sell our home, then have closing costs eat up so much of our down payment that we are unable to upgrade to the kind of home we want. We have reached out to the mortgage broker we've used in the past and a bank, but have not been able to get a call back from anybody. Thanks to those of you who left contact information - we will likely start working our way through those names next!. Thanks again! :)

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S.B.

answers from Chicago on

I know 2 very knowledgeable mortgage brokers who have been in the business for quite a long time. They will tell you what is right for you. Proof of that is I spoke to one (Cindi) about refinancing at two different times and both times she came back and told me it wasn't worth it for me. Needless to say, I was impressed. Give Cindi Rees, First Centennial Mortgage, ###-###-#### and/or Jane Doty, Inland Home Mortgage, ###-###-#### a call. Tell them S. sent you. Good luck.

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M.H.

answers from Chicago on

my husband does mortgage's for a living. He'd be happy to answer any questions you may have. His cell ph is ###-###-####, and his name is Nick. Good luck to you guys!! :)

1 mom found this helpful

J.P.

answers from Lakeland on

Here is a link of the usual closing costs, I think they may vary from state to state. Here in Florida and in PA we did not need to hire an attorney. We have bought properties in both states so the closing costs have varied. You can also request that the seller pay some (like half of the closing costs) of the closing costs, but with the market being so low it's not likely. The seller also has to cover the realtor’s commission and sellers closing costs.

The amounts will also vary on the cost of the home, how much you put down, etc.

http://www.bankrate.com/brm/news/mortgages/2008/closing_c...

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J.A.

answers from Chicago on

Call Bill Skutta from Mortgage Resource Group in Elmwood Park. I send everyone to him that has mortgage questions. He is great and super knowledgable on many products. He did our FHA loan and refinance. Cell ###-###-####.
J.

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W.D.

answers from Chicago on

Hi E.,

That link is good - letting you see the actual list of things that you may be charged for with getting a mortgage....though not sure I'd take the actual value amounts.....there are quite a few that seem pretty low for around here.

I'm just a real estate agent, not a mortgage broker, but I do help my clients with estimated closing costs on the buy and sell side. I have it in doc form though- would have to email it to you. Private message me if you'd like it.

If not, a good rule of thumb, if you just want to have a feel for the actual dollar amount in costs, is for a buyer 3-5% of the purchase price (depends on if you are escrowing taxes. If you are, you'll be on the high side of that) and 8% of the purchase price for the seller. This includes realtor commission of 5% and 3% close costs.

If you go by those percentages, you should be pretty safe.

Good luck, and feel free to email if you have questions!

W.

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J.W.

answers from St. Louis on

There is no answer to your question too much depends on the type of loan, your credit, the term, points, how much an appraisal cost in your area, when your home owners insurance is due and how much must be brought in for your escrow same for real property tax.

In the end though, no closing costs must be rolled into the loan balance. The flip side all closing costs can be rolled into the balance so long as you have sufficient equity.

So you need to talk to the broker because only they know the terms you will be offered.

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R.M.

answers from Cumberland on

Nowadays, it is best to make an appointment with a mortgage broker/banker and they will sit down with you-and all your financial info, and determine-as closely as possible how much you qualify for and what you will need to come up with as far as down payment, closing costs and escrows-in other words, you shop for a home, after you have been approved! I wish I was still in the biz-I would help you! Good luck!

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J.G.

answers from Minneapolis on

So, I'm a really analytical person as well but this seems like overkill and can be managed much more easily by just talking to a professional. There's no obligation--start at your bank. The industry is SO tightly regulated you're not going to get a fairly accurate picture of the situation you're in without a lot of extra fees and nonsense. There's just no way that you can think of all the scenarios on your own as unexperienced homebuyers. We are in our third home and this time was entirely different than even the last two due to the limitations, etc. I STRONGLY recommend you go, sit down and do a face to face "where we stand" meeting with a mortgage professional in your area.

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A.L.

answers from Chicago on

There are many different factors and it will change on any number of things. Your best bet is to talk to several different brokers. I know some in the Naperville area if you are interested. Many will talk to you up front with no cost and help you understand.

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V.L.

answers from Chicago on

Call Townstone Financial.

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G.H.

answers from Chicago on

I was a mortgage broker for 20+ years. Your question cannot be answered by us, at least not right now. Every little bit of info is very important and can be a big deal when trying to calculate everything at hand. It's best if you meet with at least 3 different people (bankers & brokers). This way you can give them the full picture & they can give you the full picture and all your options. I am not far from you and have a few people I have worked with in the past that I highly recommend. Feel free to PM me if you want their info or if I can help with more detailed info.

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