looking to buy house around 1.5M in East Bay. How much closing cost should i budget for? also, what factors determine closing cost?
Your realtor will do a better job with this than blind
Closing costs are between 1.5 to 2% (excluding down payment ofcourse).
is it a factor of loan amount?
Jesus get a realtor. This is basic stuff
Closing costs likely 7-8k ( not including loan fee / points ) and not including the prepaid taxes - insurance and interest
The biggest number in closing cost is likely the mortgage difference between the day you closed and the 1st of the month. So if you close on the 5th, you will pay mortgage on 25 days till the next 1st of the month, and afterwards the mortgage will start the month after So close 5-April Pay mortgage for 5April to 1 May in closing cost First mortgage to bank due 1 June
Also an option - close on 5th … get a credit for the 5 days of interest - pay zero interim interest - have 1st payment due may 1st …. Really same amount of costs in two diff options
Ideally lender credits should cover all closing costs and you should get 2.5% of home price as rebate from the buyer agent but subtract about $5k from that for the commision to someone like shop prop
Shop prop are very slow and make mistakes I felt
These are my closing costs on a 1.45MN House
Thanks for sharing. is this in bay area? asking bcos i think I heard it would be around 30k here
Looks like the Wells Fargo template. Just don’t get the title insurance as it’s optional and only required if you don’t trust the owner. Home insurance is estimated as $3000 but you can find it cheaper at Geico, Hippo etc. around $1500-2000 which goes towards the home as prepaid. Rest looks accurate
If using a loan - you have to pay for the lenders title policy …. The seller pays for the owners title policy
1%
Jai Shri Ram
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