Skip to main content

F.T.H.B. - Need help understanding closing cost situation

Home details:

$410k in California

FHA loan with 3.5% down

Higher end neighborhood but the home has never been fixed up or maintained well since built in the 1990s. Similar homes in the area are going for $450k - $600k, so it's definitely a fixer upper.

I asked my agent to put in an offer for full asking price & asking the seller to cover closing costs. Agent tells me they accepted. Signed the offer contract, but noticed the seller credit is at $10k. Asked about it, told not to worry, closing won't be more than that.

But, so far I have paid for general inspection, rodent inspection, and appraisal. After doing research, I found out at least the appraisal could have been paid by the seller due to it being part of the closing costs. So now I am wondering what else I'm going to have to pay.

I checked the purchase agreement again and a few boxes are blank, but seller is checked for most, except for escrow fees where it says buyer and seller will pay their own. Is this not a fee that the seller could pay?

I asked the mortgage broker to tell me if there will be anything I have to pay outside of what the seller credit won't cover, and he gave me the same line as the agent which was to not worry, it shouldn't be more than $10k for everything.

So, what can I expect? Any sudden fees to look out for? Anything the seller cannot cover in what's needed to close? Anything I have to cover as part of FHA requirements (not down-payment related)? Should I try to get a refund on the appraisal fee? Also, should the upfront home insurance and mortgage insurance be part of the closing costs?

I really love the house and am dreaming about the potential of it after fixing it up, but I do not want to be put in a situation where I'm paying more than I had to all because my realtor did not negotiate properly on my behalf.

​

TL;DR - Asked agent to put offer on house for full asking price and seller pay all closing costs. Agent said they accepted, but only $10k was on purchase agreement. Agent & mortgage broker said don't worry, won't be more than that. Escrow fee not set to seller paid in agreement. Already had to pay for inspections and appraisal. Wondering what else I am going to have to pay for and what to look out for.

submitted by /u/Zithroid
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1b2v86u/fthb_need_help_understanding_closing_cost/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Pool fill without engineer oversight

We are in the process of purchasing our first ever home in CA and we just discovered in the disclosures that the new build property we are purchasing previously had a swimming pool which was filled without an engineer onsite to approve the work (details from disclosure below). Is this something we should be concerned with or not? Is it something we should have additional inspections conducted on? We are originally from the UK and not really sure what to do with this information and if it is concerning or not. A POOL DID EXIST PREVIOUSLY. COPING, TILE, GUNNITE AND REBAR WERE ALL REMOVED AND DIRT AND CLEAN DRAIN ROCK WERE USED TO FILL IT IN. COMPACTED FILL WAS NOT USED AND NO ENGINEER APPROVED THE DIRT AND DRAIN ROCK FILL IN submitted by /u/tommot82 [link] [comments] source https://www.reddit.com/r/RealEstate/comments/dpyzw8/pool_fill_without_engineer_oversight/
Post a Comment
Read more

Making offers on houses not listed for sale.

I want to buy a home for retirement. I am looking at lots of options, mostly focusing on the locations that appeal to me. I see lots of Zillow estimates of homes that look like great deals to me. Are these estimates accurate, even though similar houses in the same area that are for sale are usually priced much higher? If so, is it realistic for me to try to make offers to owners that do not have their homes listed? Would a realtor even consider helping me do this? Or, do these values indicate that the houses listed for sale are overpriced, and I should just lowball until someone accepts? Are houses today tending to sell far below list prices, or ??? submitted by /u/chewybrian [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1o4mcon/making_offers_on_houses_not_listed_for_sale/
Post a Comment
Read more