Closing Costs: Just A Slice, Please

Though I love my cheesecake, I don’t want to stuff myself. And most homebuyers certainly don’t want to stuff themselves with closing costs.

Here’s a great post about closing costs. Dan’s pie chart shows that, in general, lenders’ costs are only a small portion of the total costs (He does not include the 10% of the underwriting cost as part of the lenders’ overall percentage, which I would think should be part of the total lender percentage. Some brokers/bankers simply pass on end-lenders’ fees, and so this would be something to discuss with the loan officer.)

Dan is right on: many loan officers “forget” to add other costs, which, even though the numbers are estimates, do not project a fair and accurate cost analysis for the borrower to compare. Unfortunately, these extra costs will appear on the settlement statement at the closing.

During the pre-approval, when you are reviewing the Good Faith Estimate, make sure you understand all the numbers.

One slice is enough. Unexpected closing costs can certainly give you indigestion.

26 April 2007 | First Time Homebuyers, Closing Costs | Comments

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