buying a house and closing cost?

Question

I am buying a 200,000 house and was told that the closing cost
would be 6,800. Is that too much? What is the usual closing cost for a similar priced house?

Answer 1

The closing costs depend not only on the price which is only the basis for making the calculations, but the taxes, fees, recording and attorneys costs in the area the house is in and your settlement date, they all make a difference. Off hand $6,800 does not sound too bad and should be close. When you sign your contract you will get the good faith estimate of those costs outlining what the total consists of. As you get closer to your settlement date they can nail down the number more precisely.

Answer 2

The closing costs will depend on your mortgage. Does that amount include your down payment? Some lenders charge points. That's where you pay 1 or 2% of the amount borrowed up front in order to get a lower interest rate. You also pay for the title search and appraisal. The taxes are divided between the buyer and seller. The lawyer will have a closing statement with everything itemized. If you have any questions about an amount on the closing statement, then ask. Sometimes lawyers make mistakes so be sure it is correct.

Answer 3

There are really alot of factors to be determined. Like for example, how much is the bank charging you for their fees...



Also how much prepaid interest and tax are going into this as well.



To be honest, 6800 seems high. But not insanely high. We paid about half that for a 300k house. But then again we were getting cut some great deals because our mortgage broker is a family friend, and we have a lawyer in our family. So we saved big there. But normally closing costs will range from 1%-3% of the house price. Anything in there is acceptable. So your actually paying more like 3.5%. A little on the high side.

Answer 4

The average closing is about $1000.00 - $1200.00. This includes cost of drawing up and registering one mortagage, preparing Land Transfer Tax Affidavit, searching title and disbursments. Adjustments on Closing This amount is dependent on how much of the property tax, heating costs, water bill, and any other property expenses the vendor has prepaid. Land Transfer Tax Land Transfer Tax is determined by the purchase price of a property as well as the type of property being sold and the residency status of the buyer. If the buyer is a resident of Ontario, then the land transfer tax is based on a sliding scale with the buyer paying a higher percentage of tax on increasing portions of the total value of the property. The following is the Land Transfer Tax scale for the sale of most residential properties. Purchase Price: $0 - $55,000.00 $275.00 $55,000.01 - $250,000.00 1.0% $250,000.01 - $400,000.00 1.5% $400,000.00 + 2.0% Home Inspection The average home inspection costs between $250.00 - $385.00. This should include a check of all major systems, written report, and some type of "Home Book". Other prices are available for more or less comprehensive inspections. CMHC Fees The actual insurance premium charged is generally added to the principal amount of the mortgage and paid back by the borrower on a monthly basis. There is, however, an administration fee of $175.00 which must be paid for in cash. PST is also charged on insurance premium and must be paid for on closing. Survey Title Insurance If a survey is required and is to be paid for by the Purchaser a cost of $650.00 - $1000.00 can be anticipated. Relatively new to the Canadian housing market is the concept of Title Insurance which can be purchased for much less (approximately $250.00) and serves the same purpose as a survey. Miscellaneous No house is perfect. Invariably a new owner will want to improve the house in some way or another, even a coat of paint can cost up to a thousand dollars or more. As a rule of thumb one should expect to spend several thousand dollars on minor improvements on a home after one moves in (this figure does not include renovations of any significance. Moving It depends on whether or not you hire professional movers, how far a distance must be travelled and how many possessions you own. But even if you have friends/family to help you move, plus renting a wreck and providing pizza and beer for everybody, it will still be a couple of hundred dollars.

Answer 5

It doesn't sound too bad to me. I just bought a house for $339,900 & ours was waaayy higher..I think it was close to $11K before we got a seller credit & our realtor gave us a 1% credit too.



The actual closing costs depends on several factors, like:

-how many points were on the loan (origination & discount points - usually each point = about 1% of the cost of the house)

-how much did the lender charge for all the fees associated with closing (ie, the appraisal, title fees, mortgage insurance, credit check fees, etc.)

-are you receiving a credit of any sort from the sellers of the house or your realtor

-What are the prepaids? For our loan, we had to either pre-pay or pay @ closing for our first year of homeowners insurance & for interest on the loan remaining in the month (so if u close on may 31, u will only pay for one day of interets @ closing)



**You may want to ask the lender if you can get any of the fees waived, sometimes if u use their preferred title company they waive $$. By using our the preferred title company of our lender, we saved $500!!! At the end, after credits from the sellers & realtor, we paid about $5,000 (thats including the good faith $$ we put up when we put a contract on the house).



Good luck & congrats!! :o)

Answer 6

Closing costs vary depending on the type of financing that you're using and what the mortgage lender charges for fees. Things that the lender can't control are prepaids for fire & hazard insurance, appraisal, etc. Check your truth in lending statement carefully to see exactly how much they are charging you to handle your loan and if you're not happy, shop around.

Answer 7

That sounds about right for closing costs. If you payed near the full asking price fpr the house the owner should be paying at least part of them.

Answer 8

Some lenders offer NO closing costs on loans. This is a buyers market so you should be able to get a deal. I think Countrywide offers that.

Answer 9

did u try bank of america - they are advertising no cost closing...

usually closing costs are about 3-6% of loan...