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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!

4 Thoughts on Is downpayment included in closing costs?
  1. Reply
    Rob
    February 15, 2014 at 1:44 am

    Sorry u are going to b learning some expensive
    hard life lessons.

    should have spent some time reading studying b4
    start looking.

    a “down payment” is NOT part of closing costs.

    here locally , a 97 K house/mortgage will cost u
    about 4000 -5500$ up front for closing costs.

    here it includes,
    property structural inspection.
    bug inspection,
    independent appraisal,
    property survey
    title insurances,
    property insurances
    flood insurances
    Escrow costs.

    so u need more money available b4
    u get the keys.

    good knowledge is good luck.

  2. Reply
    Pascal the Gambler
    February 15, 2014 at 1:59 am

    No, down payment is separate from closing costs.

  3. Reply
    loanmasterone
    February 15, 2014 at 2:44 am

    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”

  4. Reply
    Dan Feuser
    February 15, 2014 at 2:53 am

    In calculation to the down payment, you’ll also have to pay ultimate costs — miscellaneous fees charged by those concerned with the home sale such as your lender.

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