Another Closing Cost Example

Question: 

  Closing costs for $330K loan:

• Appraisal Fee     $ 350.00
• Credit Report Fee $ 15.00
• Flood Certification $ 10.00
• Settlement Fee - Borrower $ 750.00
• Title Insurance $ 650.00
• Recording Fee - Deed $155
• == Total $1930

Answer 1: 

• Appraisal Fee:   $ 350.00  --Ok
• Credit Report Fee $ 15.00  --OK
• Flood Certification $ 10.00  --OK
• --Above three are charged by your bank.
• Settlement Fee - Borrower $ 750.00--what's this, Your attorney fee? than that's OK
• Title Insurance $ 650.00--Seems too low for 330K house, what state are you in?
• Title insurance for a 330K house, in NJ/NY, if you buying a house, it is about1450, refinance 770, Other state could by similar amount.
• Seems it is missing:
• title search/survey, avg $500 here in NJ
• Recording for all(plus other small charges), avg $500 in NJ
• Usually bank would charge origination fee/commitment fee etc, total could be 400-700.

Answer 2:

• Very cheap. Usually around $3000
• Should also have: 
• lender underwritting fee $895 to $1000
• broker fees $495
• Appraisal $350 is cheap. Usually 485
• If NO Point NO fee，rate would be 0.125% higher for Primary Residence
• For Investment property, it would be difficult. Bank would charge for 1.75 point.