In real estate there are GREAT questions that we hear over and over, this is one of those questions.
HOW MUCH ARE MY CLOSING COSTS GOING TO BE??
This is an important question when buying a home. You need to be very aware of the cost that you are going to incur during the process and Closing Costs along with Down Payment are your largest numbers.
Ideally, when you sit down with your lender and discuss the different financing options, they will give you what is called a Good Faith Estimate. This document will outline your closing cost, down payment and pre-paids that you will need on the day of closing. They will also advise you what the Seller is allowed to contribute to your closing based on the type of loan you decide on.
In the Central Louisiana market, closing costs can greatly vary depending on who your Lender is. Sometimes what sounds like a good deal on interest rate, can be a nightmare on your closing costs. It's the Pay me now or Pay me later philosophy.
My Lender of choice is MISSY COFFMAN at RED RIVER BANK. So I can speak to closing costs based on going through their mortgage department. On an average sales price of $155,000 with a FHA loan on a property inside the City Limits of Pineville. You could expect your closing costs to be about $4,900 which includes pre-paids (ppd's). In addition to the closing costs you would also be looking at a down payment of about $5,400.
Since you must have at least 3.5% vested in the property of your own money, the most the Seller could pay would be the $4,900 in closing costs.
If you were outside of Pineville in the Deville area that number could go up about $800 - $1000 due to the higher property tax millage rate.
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