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What CP Closing Costs are bogus?

Posted by pbx2 (My Page) on
Mon, Jun 11, 12 at 0:13

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.


Follow-Up Postings:

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RE: What CP Closing Costs are bogus?

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


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RE: What CP Closing Costs are bogus?

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.


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RE: What CP Closing Costs are bogus?

@ 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!


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RE: What CP Closing Costs are bogus?

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/


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RE: What CP Closing Costs are bogus?

Thanks you dreamgarden!

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


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