When you negotiate a contract and decide on a lender, you should always take into account closing costs and pre-paids. Here's the difference between the two.
Below I have pasted a chart for a closing cost estimator. I hope you find the chart useful when you negotiate for your clients. Download the chart here!
Please remember the buyer has the right to choose his/her own lender, settlement agent and homeowners insurance agent. Those decisions may impact closing cost figures.
For example, if the home is worth $100,000, the chart estimates closing costs will be 4.25% on a conventional loan. FHA loan is also 4.25% and a VA loan 4%.
To view the full chart- Download it here!
If you have any questions about closing costs and how they might impact your clients as they purchase a home, please contact me at 757-490-4726 orsrubin@tidewaterhomefunding.com.