Buying a house, need help!!!!!

[Svnla]

My brother is buying a house and these are the items on his mortage application:

(30 years with 5.75% interest)

Estimated closing costs:
Loan origination fee
Appraisal fee
Credit report to CBA
Tax service fee
Flood certification fee
Electronic registration to MERS
Settlement or closing fee
Title insurance
Recording fees
Pest inspection

Estimate prepaid items:
Interest 15 days @ 26.6233
Hazard insurance premium
Hazard insurance reserves 2 payments @ 100
City property tax reserves 3 payments @ 27.83
County property tax reserves 3 payments @ 54.42

Transactions summary
Principal and interest
Taxes and assessments
Hazard and flood insurance
Mortgage insurance
Other

Purchase price
Refinance/payoffs
Est. closing cost
Est. prepaid items
Total cost
Less adj loan amount
Less cash deposit
Less other financing
Less amount pay by seller
Less other credits
total credits

---------------------------------------------

Are these look ok to yall? I understand that if your downpayemt is 20% of the house, you do not have to pay Private mortgage insurance. The current owner says he lived in the house for almost 10 years and no flood whatsoever, so shall we cut that out?

What other things we can do to cut out the fat and unnecessary stuffs? Thanks.

 

[db]

Every time you buy a house, you learn what not to do next time.
If you can eliminate the PMI with a high enough down, that's a nice savings. Still need homeowner's insurance, though.

 

[HomeBrewerDude]

don't cut corners on insurance. If something bad happes then you will be left with a house you can't sell, can't afford to fix, and can't use as collateral in a second mortgage.

 

[spacejamz]

The current owner says he lived in the house for almost 10 years and no flood whatsoever, so shall we cut that out?

If the house is in a flood zone, flood insurance is required...

 

[Splork]

Just bought a house myself. Looks pretty normal. Remember, when you buy a house at least 40 people touch your loan before the house is yours. Good luck! It's the greatest stressful time in your life (one of them anyways)!

-sp

 

[spacejamz]

Here is a helpful Link for ya about some averate/estimated closing costs...

according to the article, these costs are from 2001...I used them when we got our mortgage in 2003 and it still seemed good.

 

[Svnla]

Thanks for the suggestions. Keep them coming.

 

[Doggiedog]

Did you get an inspection done? I wouldn't just take the guy's word for it. A good inspector can find things the average person might not notice.

 

[Triumph]

I wish someone would actually explain all of those fees. As far as I can tell it's just a bunch of people all trying to put their hand in the cookie jar.

 

[axnff]

Wow, $82/month for taxes on a $169k house, must be nice...

Anyways, the Estimated Prepaid Items seem perfectly normal.

Estimated Closing Costs: Appraisal Fee, Title Insurance, Recording Fees, Pest Inspection are normal. Flood Cert is probably fine, assuming the house is actually in a designated flood zone and the fee is reasonable (this will probably also require Flood Insurance). It kind of sucks that they are charging you for the credit report, a lot of lenders will waive the cost of the report if you get a loan through them. Make sure it is not very much (around $20), as they may be trying to rip your brother off on that one. I cannot comment on the Tax Service Fee or the Electronic Registration to MERS, as they are unfamiliar to me. Loan origination fee AND a Settlement or Closing Fee? I don't remember paying both on my house, though I could be wrong.

Whereas the line items may be fine, you also need to do research to find out if the actual values are in the normal range. Some Title companies will leave out the junk fees, but jack up the prices on the valid ones.

Please note that I am not a Real Estate Professional, but did a lot of research prior to my November 2004 home purchase.

 

[MikeyIs4Dcats]

Originally posted by: Triumph
I wish someone would actually explain all of those fees. As far as I can tell it's just a bunch of people all trying to put their hand in the cookie jar.

the explanation:

it's just a bunch of people all trying to put their hand in the cookie jar.