As a real estate agent some of the most common questions that I receive from buyers are how much is the closing costs, how much is down payment, and how much to bring to the table at closing. The most accurate answers that any buyer can get is to consult with their lender. However, having said that, generally these are what a buyer or a borrower can expect to pay:
Downpayment (Each mortgage type has their own standard requirement for down payment):
FHA- 3.5% down payment required
VA- No down payment required
USDA- No down payment required
Conventional- Minimum 5% down payment required (There are 3% down programs with very restrictive guidelines)
Closing Costs
Closing costs are the many companies that are involved in the transaction such as Appraisal, Survey (typically can use the sellers’ if they have an existing one that nothing structurally has changed to the outside of the home), Tax Certifications, Underwriting, Processing, Wire Fees, Title Fees, Recording Fees, Recording Fees, Closing Attorney, Closing Docs Attorney (who draws the closing docs), etc.
Pre-paids
Typically consist of 1 year of insurance +3 months in reserve in insurance + 3 months of reserve in taxes. Borrowers will choose their own insurance company.
Quick Calculation (will not be exact)
- $100,000 sales price - use (for closing cost and prepaids) $6000.
- For each $1000 up or down add or subtract $30 ($101,000 would be $6030; $99,000 would be $5970).
- Add the down payment required/ requested (see above)
So if a $200,000 Sales Price FHA, then $6000 + $3000 + $7000 Downpayment = $16,000 needed.
If you are looking to sell or purchase real estate in Dallas Fort Worth area please call me at 469-371-2899. I'm honored to be able to assist you!
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