I received this question from a reader of this blog.  

I thought many of you might appreciate reading the response:

Dear XXXXX,

Currently the minimum down payment for an FHA loan is 3.5%

You will also have closing costs including your loan fees, escrow fees, title
fees, prepaid taxes and interest, and recording fees.

Also keep in mind that you will want to have an inspection done on the home and
I highly recommend a sewer scope if you are purchasing a home but not if you
are purchasing a condo.

Here is an estimate of what you can expect to pay for a $300,000 home.

Escrow Fee:  $500-$600
Title Fee: $700-$800
Recording Fees: $100-$150
Inspection: $400
Sewer Scope $200

The fees associated with your bank loan will be the most expensive part of the
closing costs.  It is difficult to estimate what they might be.  Banks vary.
1% of the loan amount is typical for an origination fee, but then there are
other fees associated that you would need to speak to you lender about.

Prepaid Tax and interest is dependent upon when in the month you sign.  You
typically don’t make a mortgage payment the first month after you move but the
interest and taxes still need to be paid at closing for the period before you
first payment.

I hope the info helps.  If you have more specific questions.  Let me know a
little more about your situation and I’ll be glad to see what I can do.

———————————————————-

Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

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