There is no percentage that applies to closing costs. Closing costs are everything that you the buyer needs to come up with to close ie insurance binder, pre-paid escrows, mortgage origination points, title insurance, attorney fees etc.
I am located in Chicago. In my market closing costs for a SFR should be about $1,500-$2,000.00. This is about .5%-1.0% of the property value. The percentage will vary by your marketplace.
Respectfully,
Phil
Phillip Herrejon
President of the Chicago Real Estate Investment Club
Investment Property Finance Consultant
312.375.7132
**Please See My Profile**
I have learned an excellent way to pay no closing costs at closing. Ask the seller to pay closing. If they refuse, raise the purchase price to whatever closing would cost plus an extra $200-$500 and then ask again. It's a way to finance your closing and pay it over 30 years. An experienced investor taught me this technique and he's never been turned down. I am going to use this technique on my next propertyand just thought I'd share.
1% makes sense as far as the origination point but there are other fees associated with closing. Most people believe they need only make the down payment when there are several other costs that come with purchasing property and obtaining financing.
Dependent on the lender, they will allow up to 3% seller concessions on "non-recurring closing costs". Some lenders even allow for 6%, but almost all of them allow 3% as allowed by Fannie Mae.
If you are going to inflate the price of the property, then you must do so before you go into contract. Lenders will not allow you do change the price once you have submitted it to them.
cmyke was right on with the having the seller pay closing. i did that on my first condo. my second one, HUD paid. if you do it this way, it leaves money in your pocket for the short term and if you buy right, it will also leave enough room to generate a profit everymonth.
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There is no percentage that applies to closing costs. Closing costs are everything that you the buyer needs to come up with to close ie insurance binder, pre-paid escrows, mortgage origination points, title insurance, attorney fees etc.
Right on, maw!
there are a couple of rules of thumb, but they are dependent upon your mode of transfer and type of loan or cash agreement.
clear2close
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You can count on the loan costing you 3-6%. Depending on several factors.
I am located in Chicago. In my market closing costs for a SFR should be about $1,500-$2,000.00. This is about .5%-1.0% of the property value. The percentage will vary by your marketplace.
Respectfully,
Phil
Phillip Herrejon
President of the Chicago Real Estate Investment Club
Investment Property Finance Consultant
312.375.7132
**Please See My Profile**
I have learned an excellent way to pay no closing costs at closing. Ask the seller to pay closing. If they refuse, raise the purchase price to whatever closing would cost plus an extra $200-$500 and then ask again. It's a way to finance your closing and pay it over 30 years. An experienced investor taught me this technique and he's never been turned down. I am going to use this technique on my next propertyand just thought I'd share.
1% makes sense as far as the origination point but there are other fees associated with closing. Most people believe they need only make the down payment when there are several other costs that come with purchasing property and obtaining financing.
Dependent on the lender, they will allow up to 3% seller concessions on "non-recurring closing costs". Some lenders even allow for 6%, but almost all of them allow 3% as allowed by Fannie Mae.
If you are going to inflate the price of the property, then you must do so before you go into contract. Lenders will not allow you do change the price once you have submitted it to them.
cmyke was right on with the having the seller pay closing. i did that on my first condo. my second one, HUD paid. if you do it this way, it leaves money in your pocket for the short term and if you buy right, it will also leave enough room to generate a profit everymonth.
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