Should a FHA mortgage good faith estimate for closing cost be over 11,000 on a 243,000 house?
Posted by admin | Under FHA Mortgage Saturday Nov 29, 2008I finally found a great home and after the contract is signed my mortgage lady gives me a good faith estimate of 11309.07 She said FHA loans are typically higher.is this true.Should I be looking for a different mortgage person
It probably isn't too unreasonable. $2400 for the origination fee, another $2500 or so in processing, admin, etc, a couple of grand for PMI, and a thousand for escrows, and another grand for prepaid interest, Plus you may have a discount point or two built in.
FHA loans are expensive look into some convectional that might meet your needs.
And MOST IMPORTANTLY, DO NOT be afraid to beat some of the fees out of your broker. When push comes to shove, you would be surprised how fast the fees come down. I can usually get the fees down to around 40% of the fees listed on the good faith estimate.
Ummmm……if you have time to find other financing before you have to close this house deal, do so. You are being walked to the river off a very short plank.
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sounds about right.
you can shop around, but you'll probably only save like $1,000…and that'll be after a LOT of shopping around.
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It probably isn't too unreasonable. $2400 for the origination fee, another $2500 or so in processing, admin, etc, a couple of grand for PMI, and a thousand for escrows, and another grand for prepaid interest, Plus you may have a discount point or two built in.
FHA loans are expensive look into some convectional that might meet your needs.
And MOST IMPORTANTLY, DO NOT be afraid to beat some of the fees out of your broker. When push comes to shove, you would be surprised how fast the fees come down. I can usually get the fees down to around 40% of the fees listed on the good faith estimate.
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Yes. it probably includes the 2.85% mandatory cash downpayment, as well as title and escrow costs, and 6 months taxes+ one year's home owner's insurance.
it is very common for FHA loans to have 5-6% closing costs. It was not wise to bind yourself to a contract without getting a good faith estimate beforehand. If you had been informed, you could have had your agent write your contract so the seller will pay all those costs.
If FHA is on the table, you may have extreme difficulty qualifying for any other 100% loan program. If you can't, and can't pay closing, you'll be allowed to back out of the contract or re-negotiate. I would suggest the latter if you like the house.
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Work for a FHA approved broker
If your scores are over 660 tell her you want to compare to conventional financing and another lender.
$11,000 is high, even if they roll the 3% into the loan.
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First off Closing cost are expensive. But remember this is only a good faith estimate your closing cost maybe be less but then they could be alittle more.
What you could do is, if you work for a job that has a union sometimes you can get a loan from an institution that deals with the union an offers loans with limited fees.
You save alot of money using these types of lenders.
Also, some lenders offer loans without closing cost which is alittle misleading because there are some fee they must charge by law. But they also save you money. Good Luck.
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It hard to say with out looking at it. Are you getting a par rate or is he getting a rebate? What are the fees, they are different from lender to lender.
If your rate is about 6.125 it fair
If it at 7% run or tell them to down their brokers fees.
Just shop around
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