Hi, I am kinda thinking of maybe buying a place to own. Start with something small like a condo or co-op. I asked a couple of people what closing cost would be like in NYC but so far I haven't been able to get an answer. Anybody got some insight into this.

 

Closing costs vary widely depending on the cost of the property, the lender and lawyer doing the closing. Each of them have fees of their own, but you can usually estimate closing to cost between 1% and 2% of the value of the property... so go with 1.5%. Again, that is just a very rough estimate. Even the time of year you buy can determine what your closing costs would like like... time of the month that the closing occurs can affect closing costs... towards the end of the month is always best.

 

I used a Mortgage Broker (NEVER AGAIN) and my closing costs for everything (taxes, fees, blah blah blah) were about 5% - would of been a little less without a broker, but still expensive due to taxes.

And if you escrow, you will need to put that money upfront at closing

 

A good faith estimate should give you an idea should you inquire with brokers. They'll tell you more or less how much you need for taxes and insurance and other "pre-paids". Some unscrupulous brokers though will disclose one thing and try to screw you at the end.

 

Not all brokers are bad... I had a good one that got me an incredible rate and his fee was not bad at all. Just request a good faith estimate from your broker or lender and make sure that you get the best deal.

 

Skip the broker. Go directly to your lender and apply for a loan. They will provide a good faith estimate of closing costs that will generally be in the ball park. While I don't believe that all loan brokers are bad, the majority do put their own interests ahead of yours because they want to maximize the amount of fees they can make on each deal.

Good Luck

 

But on the flip side since they have wholesale rates which are lower than retail. Get luck getting a broker that'll hook it up.

 

I think mine were a little over 2K for a 180K house in MA... In MA we have to have a lawyer involved (in RI, it's not necessary, but recommended), so that's adds to the cost.

A good faith estimate will give you a good idea of the costs. Get preapproved, find a place, and get a GFE to know where you stand...

 

when you go to sell this is a key item to talk with the buyer about.
For example: My sister and brother in law sold their house St Louis. They had 2 couples after the house. The first couple said we'll give you your asking price(which i thought was kind of high for the neighborhood they lived in)(it was around 150 k) the second couple said we'll do that and give you 10 k extra. The first couple said we'll do that and pay closing cost. They said SOLD.