97BossHammer

Selling my house by owner and the couple that is buying it is using an online company......Home loan center or something like that. Anyway, I was looking to pay about $1200 in closing costs as a seller, a friend of mine right down the street closed on his and these were the costs. Well, this online company has told me that the closing costs are around 8-9K and I'm expected to pay 3-4K of it. I have talked to several people in my area who have either sold or bought houses recently and they said these charges where WAY too high. The couple buying it is getting a low interest rate.....but it should not be up to me a seller to pay higher fee's so they can get a lower rate. Anybody else have any experience dealing with one of these online lending co's? I think this deal is fixing to be dead and my house will be back on the market.

Formula Outlaw

"Closing Costs" are one of the "fine line" items in a real estate contract. I have several friends who are real estate brokers and there does not to seem be any "rhyme or reason" to the rationale on these costs.

My friends have stated that there ARE SO MANY mortgage companies out there now you can afford to pick and choose.

My wife and I get 8/10 offers a week to refinance our home. If I took every offer up, and got it, I've received in the last year in a half, I could buy Rhode Island.

We actually are in the process of refinancing our home, and by shopping around we were able to get our closing costs down to around eleven hundred dollars. Some were as high as nine thousand. This is one of the original "buyer beware" issues. Good luck.

97BossHammer

I just read up on some of this stuff......apparently these guys are probably paying points up front and getting a lower rate. From what they have told me they are getting a real good rate and yes it is probably better for them in the long run to get a lower rate, but that jacks up the closing costs......and as a seller I can care less what rate they have, I shouldn't have to pay for higher closing costs so these guys can get a lower rate. I have looked at the actual paperwork for 2 houses that just closed in my area for more money, and the costs were around 1100-1200 for the seller. Now why I should have to pay 3-4K so their interest rate will be cheaper is beyond me......am I missing anything here?

ofshore

I don't know exactly how it works so bear with me when i ask this question. When you sell a home by owner you really don't care how the buyer gets their money weather their paying cash or getting a mortgage so why would you pay a fee to their lender? It just seems to me that they should pay 100 percent of the fees from their lender otherwise your loosing some of the benefit of fsbo.

Cord

iTrader: (2)

Why are you paying their costs anyways? This is usually something that they would pay. And yes, these costs are exorbinate. Usually they are in the $12-1500 range. If you agreed to pay half the costs, then you really don't have any recourse.

97BossHammer

Exactly, thats what I'm thinking. I agreed to pay typical stuff a seller usually pays, lawyer fees, appraisal, title insurance, etc.....this usually adds up to about 900-1200. But basically they are getting a low rate from this guy and in return the closing costs are more expensive......if the rate was higher the costs would be lower. From a seller stand point I can care less about what rate they are getting....it's not my job to contribute to that. The lender was asking me yesterday how much I'd agree to pay...he wanted a dollar figure. Kind of reminds me of a car salesman that asks what you want your monthly payment to be.

rainmn

Am I reading this right? Their mortgage co. was asking you how much of the closing costs you would be willing to pay?
If the buyers got sucked into paying points for a lower rate, how is that your problem?

rchevelle71

iTrader: (1)

This happened to me a few years ago...........

BY MY OWN BROTHER!!!!!!!!!!!

I was selling my house in CT By owner, I had several friends and co-workers interested in paying top $ for it, and they had no problem with financing.

Well, one day My Father calls, and says my brother wants it, well, my bro is kinda a F-up, and had no cash to put down, so I didnt think he was going to get approved, so I agreed to sell it to him if he could get approved for 100% financing at a certain $$$ amount, I would pay the closing costs, so I jacked up the price a few grand to reflect the costs in his loan, and the diff back in my pocket(so I thought), so he goes to this mortgage broker, and gets it all approved, when we get to the closing, and they hand me a check for about 5 grand less than I was expecting, I freaked, closing costs were like 8 grand, but it was too late. If it were anyone else, I woulda walked out on the deal, but homeownership straightened my bro right out, Glad he, his wife and son are enjoying the house. As far as someone I dont Know, Forget it, either they buy on your terms or you sell to someone else, I am not sure of your market, but down here in South Florida, median properties are at such a premium, just name your price and conditions, and buyers will be fighting to give you more than your asking price!!!!

open87

iTrader: (2)

sold my last house and buyer asked if i would help on closing. i said no but i did reduce the price and told them that they were responsable for all closing costs for the reduced price. go to closing and got burned for almost a grand. i didn't have it in the purchase agreement that they were responsable for ALL closing costs. learn something new everyday

97BossHammer

got some more info about it. They were trying to do an 80\20 loan....basically in this situation the buyer pays all closing, well they were trying to get me to agree to 3-4K, sorry don't think so. Told him that I can't pay that much for closing, he said he can't either so the deal is off. I still have 3 months to sell it so I'm in pretty good shape......geez talk about an eye opener