1st House purchase...closing seems too high?

Buying a single-family home—my 1st property purchase. This is the breakdown…does the closing cost seem too high from this broker?

Sale price: $115K
Loan: $92K
PI - $675 Tax/Ins: $150 = $825/month
Closing costs: $11,152
Est cash close: $34,152

You’re paying basically $23K in down payment and prepaying insurance and some taxes for another $2K, so that’s $9K unaccounted. You need to look at your disclosures documentation.

Jody said:
You’re paying basically $23K in down payment and prepaying insurance and some taxes for another $2K, so that’s $9K unaccounted. You need to look at your disclosures documentation.

I posted the breakdown; would love your analysis.

I think you’re paying the property tax and insurance a year in advance, which is $9,900, and then your monthly payments of the additional $825 will be to pay for the subsequent years of insurance.

Avery said:
I think you’re paying the property tax and insurance a year in advance, which is $9,900, and then your monthly payments of the additional $825 will be to pay for the subsequent years of insurance.

Posted the breakdown; would love your analysis.

@Indigo
This is normal; I paid $17K to close because I rolled insurance into escrow.

Also, where did you find a place for $115K!!!

Avery said:
Also, where did you find a place for $115K!!!

Yeah, that’s the question.

Avery said:
Also, where did you find a place for $115K!!!

I’m getting in where I can fit in…starting in the mud sec8. So if you’re okay with risk and problems, you can find them.

Origination charges: $4,920; Svs not shop: $1,300; Svc you can shop: $1,900; Total loan costs: $8,100; Tax government fees: $800; Prepaids: $1,350; Escrow closing: $525; Other: $390; Total other costs: $3,050; Total closing costs: $11,152.

That’s the breakdown…the tax and insurance isn’t prepaid because that’s $150/month on top of the $675, which brings the monthly to $825.

@Indigo
Origination charges mean you are paying points to lower your rate. That’s crazy high otherwise.

@Indigo
You just paid for your broker’s family vacation.

Vey said:
@Indigo
You just paid for your broker’s family vacation.

Looks like it…what % of ask should closing costs be?

Indigo said:

Vey said:
@Indigo
You just paid for your broker’s family vacation.

Looks like it…what % of ask should closing costs be?

Are you buying your rate down? If you want real answers, you need to post your LE with personal info blacked out; otherwise, we have no clue if this makes sense or not. Yes, you are paying part of your taxes and insurance prepaid. You pay the entire first year of HOI at closing, then start your escrow account with a 2-5 month cushion.

@Lyle
Not buying rate down.

Indigo said:
@Lyle
Not buying rate down.

If you aren’t going to share the LE, no one on here can help you.

Lyle said:

Indigo said:
@Lyle
Not buying rate down.

If you aren’t going to share the LE, no one on here can help you.

What’s the LE?

Indigo said:

Lyle said:
Indigo said:
@Lyle
Not buying rate down.

If you aren’t going to share the LE, no one on here can help you.

What’s the LE?

Loan estimate.

@Caiden
I posted those numbers in a different post…the breakdown.

Indigo said:
@Caiden
I posted those numbers in a different post…the breakdown.

You only provided the total origination charges. That is the most important one to look at in a mortgage. We need the breakdown of the origination.