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I just recently signed an agreement to purchase a house.

Its a 30year FHA loan.

Downpayment of 3.5%=$ 3,500

The purchase of the house is $ 96,990 ($ 5,400 is sellers concession)

According to the loan officer, the closing costs is made up of 3 things

1. N/A (i miss what she said and this is whats messing me up)
2. Closing costs (i believe)
3. Prepaid expenses

What would number 1 be?
Would it be the down payment?
Or would the downpayment be subtracted from the total of the 3??

Please help me, this is my first time buying a house and this is really stressing me out!

2 Thoughts on Closing cost for a mortgage?
  1. Reply
    Jo
    January 31, 2014 at 9:01 pm

    If you missed what she said – ask her again.

    Ask her to write it down for you.

    2 is not closing costs.

    Closing costs is the total of all the expenses one pays at closing.

  2. Reply
    loanmasterone
    January 31, 2014 at 9:24 pm

    Closing cost is what you would pay to have the real estate transaction to close.

    Closing cost is considered in two different categories.

    #1. Non-recurring closing cost
    Points, fees of the mortgage loan, title report, escrow, appraisal, inspection report and things that are paid only because of this transaction.

    #2 Recurring closing cost
    Taxes and insurance

    If you are not clear as to what your real estate agent told you, it would be to your benefit to ask your real estate agent or mortgage loan officer to repeat the information. You might also request this information be emailed to you from one or both these individuals

    Your best source of getting the correct information concerning closing cost would be your mortgage loan officer. This information should be listed on your Good Faith Estimate (GFE) provided to you by your mortgage loan officer. This document is required to be sent or given to ‘you. .

    This document outlines line by line the cost of each item and who would be required to pay these cost. You might would want your mortgage loan officer to explain these items to you.

    Normally you would pay the down payment with the other closing cost borne by you or the seller and a percentage of the closing cost paid by each.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

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