Closing Costs & Attorney Fees
Hello fellow investors. I do believe that my day has finally arrived. I will be in the process of closing on my FIRST REHAB(man it feels good to say that) within a week or so and I have a question or two about what to expect to pay at closing including atty fees so here's the synopsis:
Property As is: 49900
HML Int. rate: 14.9%
Origination fee: 2%
Property ARV: 76000
For the most part I can come up w/ an est. of what I will have to pay based on the info above. But I need to know is what do most you guys usually pay for atty fees?? I really need to know this. And also is there a way that I can find out exact how much I will be required to pay beforehand?? I just don't wanna get to the closing table and not have enough to close.YIKES!!
Am i overlooking a step here b/c it sure feels like it.
Thanks a bunch guys.
The lenders should have issued a Good Faith Estimate for closing costs... Although this isn't an exact amount - its usually pretty close and make sure you have a little more than that on hand for closing costs!
Good Luck on the Rehab!
[addsig]
isn't it possible to get some of the closing cost rolled into the loan,for example, the origination fee? And how much should I expect to pay in atty fees?
Thanks for the reply.
most of the time to have closing costs included in your loan, your PA needs to be written for a little higher price then a addenda to identify that the seller is actually paying $x,xxx closing costs. For refi's it is very common to add closing costs to the loan, but recently many of the lenders I have shopped don;t want anything added as it would reduce the LTV (actually load to purchase price)
As for attorney fees, you'll need to actually talk with the attorney handling your side of the transaction; rates range from $125 to $175 per hour for me.
well the thing is my lender agrees to pay 75% of the ARV, but when I asked what amt of money would I have to pay at closing, I was told "we pay 90% of the as is value" therefore I would have to come up w/ 10% down not including atty fees. So what I don't totally get is, if they agee to pay 75% of the ARV, why isn't it possible to account for the total purchase price in the formula??