Cash required for closing?

[FoxyHonda]

Scott, I’m sorry for this shit dicking up your thread… Some people will just argue until they feel they’ve won, even when they’re wrong.:deadhorse:

[LZ1]

So why do we let women on this forum?

[FoxyHonda]

Cause somebody has to get the facts straight…

[boardjnky4]

Can you tell it’s winter time?

What are these docs from? HUD-1? Good Faith Estimate? If it’s from your HUD-1, call your lawyer with questions. If it’s from a good faith estimate, call whoever it is that is handling your loan paperwork. They can go over it with you.

[POOPRA]

Shouldnt your real estate agent be explaining all this to you, not NYspeed? Closing costs usually amount to approximately 10% of the purchase price, which in your case is not far off at all.

[boardjnky4]

real estate agents are useless with this crap, in my experiences

[POOPRA]

Usually you get a good faith estimate to help you understand what your getting into.

[boardjnky4]

@POOPRA

Usually you get a good faith estimate to help you understand what your getting into.

yeah, that comes from whoever it is that handling your mortgage… If you got one (or if this is it), it should be pretty pretty close to these numbers, and you should call them for an explanation.

[Mankthetank19]

@FoxyHonda

Cause somebody has to get the facts straight…

zing!

[Mankthetank19]

Now on topic

• I just purchased a double in kenmore - not at the amount you have.
• I had to pay everything up front for the first year because all of that is back track because the bank will be making my payments.

It sucks you owe all that money but hopefully you have a good investment property that you can look past the up front costs and concentrate on the long term investment.

I am planning on living in my double for 5 years and then use it is an investment property when I buy my second house.

Good luck!!

BTW: is it an apartment complex, nice double, business lot, etc?

[theblue]

something else just hit me – you can’t use an FHA loan on an investment property.

[Paulo]

He will be living in the house, but renting out two of the three floors.

[travisn]

@FoxyHonda

You said hazard insurance covers the house, I said it covers the property, hmm sounds the same

you made it sound like hazard insurance is ONLY forced placed. which it isnt

@FoxyHonda

You said the mortgage company gets a cut if the property burns down, I said that they make sure that there is insurance on the property in order to protect their risk

um?:

@FoxyHonda

insurance for the property with no liability insurance for the buyer?

kthx

@FoxyHonda

An i never said that it had nothing to do with being escrowed, at $1800 yeah it sounds like it is escrowed.

whats price have to do with if it is escrowed or not? cmon. wtf.

@FoxyHonda

Don’t try to use big long sentences to make yourself feel smart.

sorry, it was 430 in the morning and i kept finding inconsistencies in what you were attempting to say, so I kept going back and changing what I wrote.

@FoxyHonda

Don’t try to argue with me about homeowners insurance unless you hold an insurance license.

Oh… An just because you can read a couple of article about homeowners insurance on the computer, DOESN’T mean you know what you’re talking about. Now who’s a fucking idiot.

holding a license has nothing to do with it. so you can pass a test and get bonded? woo hoo.

you have no idea what I do for a living, I have read more than a few articles about insurance, thanks. Granted I dont work in the insurance department and there are things I dont know, I know enough to argue with you all day long.

[Mankthetank19]

@theblue

something else just hit me – you can’t use an FHA loan on an investment property.

I went SONYMA which gave my the 5% interest rate.

[theblue]

congratulations?

[chino]

you got charged ugly face tax

[slipstreamxk1]

@Scott"

Explain to me why I am told to pay $9,259 in prepaid items before closing, outside of closing costs.

Im going to need $18,251 cash to close, outside of down payment. for a 200k rental property is sounds about right after tax, lawyer, title and search and survey fee’s.

Why do I pay a years worth of real estate taxes in one shot? ($2500) You pay them up front for the year to escrow and reimburse the seller for the unused portion of his time owning it. think of it as paying your last months rent in advance for the most part. I wish my taxes we’re that low!

WTF is hazard insurance and why is it $150 a month? ($1,800) - sounds about right since its a multi unit. Hazard insuarance is your typical home owners insurance. though you should shop around. Travelers was the cheapest for me.

My FHA mortgage premium is $3377 - I’m surprised your being allowed to get an fha since its a multi unit. but thats your mortgage payment insurance. it’s 1.5% of the purchase price. you can either pay it up front or pay it over the first 5 years of your loan. It bassically covers the bank if you default.

$29 a day for 30 days? (~$870) sounds like title insurance. Which if it is Title Insurance you may want to talk to your lawyer about it and ask why he felt it nessessary to be acquired. Unless there’s some risk involved with the purchase it generally isn’t needed. When do you close?

Thats just some of the bigger items.

And this is a 200k rental property.

Can anyone break this down for me in english

Side note. Real estate agents won’t be able to help with this stuff. Your Mortgage broker and Lawyer should be the ones helping you out with this stuff though.

Hope this helps.

[Mankthetank19]

@theblue

congratulations?

Just saying that he might not be going FHA since there are more than one mortgage plan.

[Geoff]

@Mankthetank19

Just saying that he might not be going FHA since there are more than one mortgage plan.

@Scott"

My FHA mortgage premium…

You silly goose!

[travisn]

In Manks defense, the OP doesnt exactly know whats going on here, he may be wrong…