June 5, 2013

Closing Costs are Annoying

The bank sent me a detailed list of charges that will go into the closing costs and an estimate of what the amount will be that we need to bring when we close.  I did some research online and asked both my realtor and credit union mortgage representative what we could expect for closing costs and I never could get a straight answer.  I read online to estimate about 3% of the cost of the house.  Ok, that's only $2040.  My bank said a little over $3000. Ok so I'm thinking about $3200 at the most.  The total charges listed in my preliminary settlement statement are $3867.  That's not a little over $3000... That's ALMOST $4000.

It's frustrating because its not like I could price shop and I couldn't even get a real answer as to what all the charges would be ahead of time.  The seller requested we use a specific title agency since they already had a lot of the information from a previous deal that fell through.  The extra $600 - $800 isn't enough for us to back out, not that I think we could at this point just because of the closing costs being too expensive but we're already coming up with a big chunk of money for the closing and pretty close to the limit that I feel comfortable removing from our savings.  It would have been nice to have been able to have this information up front when we were making our decision.

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