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Company Loan Type APR Est. Pmt.

Huge difference in closing costs

Posted on: 21st Nov, 2012 11:32 pm
I don’t know why lenders have such a huge difference in closing costs? I'm looking at a VA 30 year fixed for 285k with 3%. No points. Each is a credit union. One bank told me closing costs of $13k while another told me $4,800? Another even told me $2400. I'm confused on this.
Hi Milo,

Were all the three closing cost estimates were given on VA 30 year fixed for 285k with 3%? Sometimes, there are chances that lenders only quote you the "lender associated" closing costs, they might leave out all the title/settlement ones, or more often, the government recording fee and transfer taxes.

Happy Thanksgiving!! :)

Take care
Posted on: 22nd Nov, 2012 01:14 am
HI Milo,

I agree with what Sara has said. You should check out with the individual lenders and get to know what items will be included in closing costs. This will give you an idea as to why they are charging you so much.

Thanks
Posted on: 22nd Nov, 2012 08:21 pm
Instead of closing costs, I will suggest you to get information about the annual percenatge rate (APR) of the loan. This is a better reflector of the true cost of a loan. Then you can get to know the different components of the APR, including the closing costs.
Posted on: 06th Dec, 2012 10:29 pm
I am agree with Skyden. A comprehensive idea of all the costs associated in a mortgage loan, will help you make the right decision.
Posted on: 06th Dec, 2012 10:31 pm
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