Help with closing cost breakdown

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Submitted by Nazzy_17 on May 26, 2016 - 3:00pm

Do these fees seem reasonable?
Purchase price is $1,000,000 with mortgage of $270K for 15 years:
$8K IN FEES:
Appraisal =450
credit rep/tax service/flood=150
underwriting =525
closing fee (?) =440
final inspection fee(?) =150
processing =525
attorney doc prep =125
settlement/closing =1,250
owners title ins =2,382
lenders title ins = 950
title-wire fee =30
title-courier fee =100
title-notary fee =200
title -endorsement fee =100
title-loan tie in fee =250
title-sub escrow =50
title-doc prep =100

This seems excessive so am seeking your opinion/s? Thank you

Submitted by harvey on May 26, 2016 - 7:08pm.

Disclaimer: I don't do this for a living but I've owned a few properties and and done many refis.

The big one, owners title insurance, does not seem to be that high considering the value of the property. But you should shop around.

Otherwise there does seem to be some junk fees in that list. When there are multiple fees with similar sounding names and conveniently round numbers as the cost, there are likely some bogus costs slipped into the deal.

Definitely ask about each one specifically. Ask what service it covers, who is being paid to provide the service, why it should cost as much as it does. (E.g. why is there an final inspection fee - is somebody being paid to perform a final inspection, and what are they doing that costs $150?) If the explanation doesn't sound legit, just firmly say you aren't going to pay it. You have nothing to lose.

And depending on where you are in the purchase process, you can always look for another lender.

Submitted by HLS on May 31, 2016 - 9:14pm.

I could explain it to you but Harvey the self imposed monitor of this site would accuse me of fishing for business.

So once again you get the ignorant advice from someone who doesn't know what they're talking about, yet they offer it anyway.

Submitted by svelte on June 1, 2016 - 7:44am.

harvey wrote:

Otherwise there does seem to be some junk fees in that list. When there are multiple fees with similar sounding names and conveniently round numbers as the cost, there are likely some bogus costs slipped into the deal.

I suspect the OP rounded the numbers themselves.

Case in point: it totals $7700 not $8K.

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