Girl Ninja and I agreed to pay all closing costs associated with the purchase of our first home. Now that we are approaching the final stretch of this purchasing process (we sign papers tomorrow), we’ve received the paperwork that breaks down all these pesky fees. Spoiler alert: It ain’t pretty.
Here’s how those costs break down on our $285,600 loan amount…
- Loan Origination Fee – $2,856
- Processing Fee – $795
- Wire Fee – $25
- Appraisal Admin Fee – $50
- Appraisal Fee – $425
- Credit Report – $33
- Tax Services – $77
- Flood Certification – $10
- Settlement or Closing Fee – $821
- Lender’s Title Insurance – $649
- Courier Fee – $50
- Government Recording Charges – $225
Total Fees: $6,015
But wait…. there’s more!!!!!
We also have to pre-pay some items…
- Interest for 15 days – $513
- Hazard Insurance Premium – $600
- Hazard Insurance Reserves – $100
- Property Taxes for Six Months – $1,450
Total Pre-Paid: $2,663
So all said and done we are dropping $71,400 as a down payment, and another $8,678 on fees and pre-paid items.
Or in other words we will be $80,000 poorer once we get the keys. Wowzers.
- How much did your closing costs run?
- Did you pay them or have the seller pay them?
- Remind me why buying a house is a good idea…haha.
p.s. It should be noted that when one negotiates “seller paid closing costs” the buyer is still paying them. I get irritated when people brag that they had the sellers pay their closing costs, as though they’ve negotiated some majestical deal. You agreed to a higher loan amount so you don’t have to pay closing. I agreed to a lower loan amount, but will pay them. It’s just a matter of paying those costs today, or paying them back over 30 years at 4.125% interest.