These costs look pretty standard. Could you share which state or county this is in, and the mortgage amount? These factors can affect fees like recording or transfer taxes. Are these from an official loan estimate or just a preliminary breakdown?
Lane said: @Finley
This is in St. Louis, Missouri. The mortgage amount is $440K. These figures are just estimates, nothing official yet.
Everything appears standard. If you find a cheaper insurance policy, your costs could decrease, as the $3,000 for homeowners insurance might be on the high side for a $550K home. Also, title company fees can vary, so it’s worth shopping around for that. Your realtor might know some reliable companies.
Most of these are third-party fees and aren’t negotiable. You can talk about the origination fee with your lender; they might increase your rate to cover it if you don’t want to pay upfront. Your insurance costs can also be adjusted by choosing less coverage.
The origination fee is the main negotiable item with your current lender. Appraisal and credit report fees are generally fixed. Your title fee does seem high; maybe check with another title company. Prepaids often look high because lenders estimate conservatively to ensure they cover costs. You might find cheaper insurance by shopping around.
Overall, the costs are about right, but you might find lower home insurance rates by shopping around. There are usually a few variable-priced services in your closing costs that you can shop for, but they won’t significantly reduce the overall amount.
In my case, the realtor was able to adjust the home price upward along with a seller credit, which helped cover the closing costs. Might be worth asking about.