What CP Closing Costs are bogus?

pbx2_gwJune 11, 2012

Our modest $500k+ bungalow Construction Perm Loan is settling with about $8500 in closing costs excluding the 20% down pmt.

Noticed the following on the Good Faith Estimate (GFE):

1) Appraisal = $800 - high?

2) Survey = $750 & Survey Fee = $750 - duplication?

3) Origination Fee = $695 - Junk Fee but we're paying 0 points?

4) Settlement Fee = $275 - Junk Fee?

5) Title Binder Charge +Title Bringdowns =$350 - what are these?

Would like your feedback & experiences please.

Thanks.

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sylviatexas1

Fees vary widely;
you might check with your Realtor, title company, or builder.

    Bookmark   June 11, 2012 at 4:47PM
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mgmsrk

1) Appraisal = $800 - high? � It depends on the area, we just paid $450 for ours so for me it would be yes but you mostly have to use the lenders pick so you are stuck.
2) Survey = $750 & Survey Fee = $750 - duplication? - Are you paying for the maps and registration as well as the survey?
3) Origination Fee = $695 - Junk Fee but we're paying 0 points? � Pretty well all banks charge a loan origination fee, most are in the $500-$1000 range. Did your last home not have a origination fee attached to the loan?
4) Settlement Fee = $275 - Junk Fee? � I don�t know what that one is.
5) Title Binder Charge +Title Bringdowns =$350 - what are these?- Well my title search is going to cost me about $1500 so that looks like a bargain. They are insuring that you have not leveraged the land for another propose

If you are unhappy with the closing costs you should shop around, they do vary by lender.

    Bookmark   June 11, 2012 at 7:24PM
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pbx2_gw

@ mgmsrk: Learn today these were estimates lender had to put down for FNMA eligibility.

1) Appraisals - Basically lender over estimated just in case we make changes to the footprint & require new review
2) Survey - we can shop for this as it is us dealing directly with builder's permitting
3) Origination Fee - yeah it's essentially a processing fee & we got it drop prior if I recall
4) Settlement Fee - This is for the settlement company's work
5) Title Binder & Bringdowns - the total for all the draws & inspections titling docs not the Title Insurance itself (that's $1000).

Construction-Perm is a whole different animal. LOL!
thanks for the input again!

    Bookmark   June 11, 2012 at 8:17PM
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dreamgarden

The fees seem like a lot. Here is some more information that might be helpful. Good luck.

How to Save Money on Mortgage Closing Costs

A link that might be useful:

www.northerncheapskate.com/2010/10/how-to-save-money-on-mortgage-closing-costs/

    Bookmark   June 12, 2012 at 8:23AM
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pbx2_gw

Thanks you dreamgarden!

Always good to have that list around when we do our final review.

    Bookmark   June 12, 2012 at 2:17PM
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