Home buying thread

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Siliconemelons

Siliconemelons

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Cad said:
I don't about your closing but 95% of the closing costs on my houses is the title insurance.
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It was in there somewhere - I have a title held by a title co even though the loan is personally financed - I have a full financial doc etc. etc. just like any other traditional mortgage - its just not a bank, but a person - all the little things are there- such as title insurance etc. I do not have mort insurance, but that is just an increase in monthly cost - not really anything in closing, maybe a small initiation and app fee- but nothing that should inflate a sub 1k process into the 4-8k that is often seen.
 
Cad

Cad

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Xadion said:
It was in there somewhere - I have a title held by a title co even though the loan is personally financed - I have a full financial doc etc. etc. just like any other traditional mortgage - its just not a bank, but a person - all the little things are there- such as title insurance etc. I do not have mort insurance, but that is just an increase in monthly cost - not really anything in closing, maybe a small initiation and app fee- but nothing that should inflate a sub 1k process into the 4-8k that is often seen.
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I still have my HUD-1 from when I bought my house.

The "title transfer" process cost me a little less than $1k... $940.23 which included lender's title insurance (requirement of the lender, not optional). I had to pre-pay my homeowners insurance for a year and interest for the month the loan is originating... I didn't pay any points but there's a blank for that if the person paid points. Govt. recording fees of $136, Survey was $327, inspection $450 (seller paid for that though), and then POW $7200 for owner's title insurance (the cost of this policy is a % of the house cost)

If I did a title search and I felt good about it I might go without the title insurance, but pretty sure lenders require it and I went through some shit to buy my house (short sale, had to remove house from seller's bankruptcy estate, etc) so I felt like it was a good idea.

But for my closing, title insurance was really the only big item. Everything else was expected and right there. Would have been sub $1k without the title insurance.
 
Big Phoenix

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Qhue said:
Okay so in my noobness I didn't know about the 'love letter' that traditionally accompanies the offer. Thankfully I have a pretty good memory and just put together a quick missive based on the elements of the current owner's personality i remember from the visit.

Assuming I don't get it I'll have to go full on Sherlock in subsequent open houses.
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This is a thing?
 
taebin

taebin

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Cad said:
If I did a title search and I felt good about it I might go without the title insurance, but pretty sure lenders require it and I went through some shit to buy my house (short sale, had to remove house from seller's bankruptcy estate, etc) so I felt like it was a good idea.

But for my closing, title insurance was really the only big item. Everything else was expected and right there. Would have been sub $1k without the title insurance.
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For a new build, should you even bother with title insurance then?

Also, did you roll escrow into your mortgage? You referenced a year's worth of homeowner's insurance so I'm assuming yes. Typically they want 3-4 months of property taxes as well which should be $4-5K in HP.
 
Cad

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taebin said:
For a new build, should you even bother with title insurance then?

Also, did you roll escrow into your mortgage? You referenced a year's worth of homeowner's insurance so I'm assuming yes. Typically they want 3-4 months of property taxes as well which should be $4-5K in HP.
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No I pay my insurance and property taxes separately, but the lender wanted a years worth of insurance prepaid up front. I didn't see property tax on my HUD-1.
 
Blazin

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taebin said:
For a new build, should you even bother with title insurance then?
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I would say yes, when I got my realtor license and in a real estate law course during MBA had tons of RL whack a doodle examples where title insurance came into play that never would have been reasonably foreseen. But unless you are paying cash you aren't going to have a choice and the bank is going to require it.
 
ZyyzYzzy

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Blazin said:
I would say yes, when I got my realtor license and in a real estate law course during MBA had tons of RL whack a doodle examples where title insurance came into play that never would have been reasonably foreseen. But unless you are paying cash you aren't going to have a choice and the bank is going to require it.
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Title insurance cost is minimal compared to what some freak random thing can cost.
 
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Qhue

Qhue

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Cad said:
Definitely is a thing when you're dealing with multiple competitive offers.
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As it turns out it is very much a thing to the tune of them accepting my offer even though it wasn't the highest actual dollar value. My realtor was pretty shocked at my beginners luck.

I would be more inclined it had as much to do with my flexibility with respect to closing dates and having gone through the whole underwriting process with a TBD for the property. Had no idea this was a thing either, but turns out in a cash-offer dominated market it helps to not just have a pre-approval but an firm 'good as cash' underwriting in place.

So yeah I might have had beginners luck and/or a very glib tongue, or just made sure I was as prepared as I could be before entering the arena.
 
Khane

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I think if it was the type of market where I had to write a cover letter to hope to get the house I'd just wait until it wasn't such a seller's dreamland.
 
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Picasso3

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ZyyzYzzy said:
Houses in the good areas of Arlington go for 30k+ over asking and appraisal.
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If my house sold in 45 minutes to 10 offers where I picked the buyer based on whether they liked the miami dolphins I'd have to think in the closing SWOT analysis that I may have left something on the table by not leaving it on the market longer or increasing my asking price.

Likewise if I'm a sellers realtor or an appraiser and everything i do in a certain area comes in 30k low I'm going to come up with my number and then add 30k to it.
 
ZyyzYzzy

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Picasso3 said:
If my house sold in 45 minutes to 10 offers where I picked the buyer based on whether they liked the miami dolphins I'd have to think in the closing SWOT analysis that I may have left something on the table by not leaving it on the market longer or increasing my asking price.

Likewise if I'm a sellers realtor or an appraiser and everything i do in a certain area comes in 30k low I'm going to come up with my number and then add 30k to it.
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Wouldn't the second half be illegal for the appriaser to do?
 
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Picasso3

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I don't know, seems like thats their job.

Do you all have to bring money at closing to cover the appraisal/sale price gap?
 
Cad

Cad

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Picasso3 said:
I don't know, seems like thats their job.

Do you all have to bring money at closing to cover the appraisal/sale price gap?
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Depends if your lender will lend you above what it appraised for.

Sometimes they'll order a second appraisal.

Usually you use the appraisal as a negotiating tool to get the seller to come down. Sometimes they tell you to fuck off. Appraisal coming in low breaks deals all the time.
 
ZyyzYzzy

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Picasso3 said:
I don't know, seems like thats their job.

Do you all have to bring money at closing to cover the appraisal/sale price gap?
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Pretty sure almost all the time you do, unless you get a second loan from the mortgage company, which they would (should?) be hesitant to do.
 
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Picasso3

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Yeah that happens here too, but it would really piss me off if I knew every house in xx is going to appraise lower than the sale price.
 
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