Saturday, September 19, 2009

How Much for Closing Costs?

I asked one of our favorite lenders the question many, many buyers are asking their Realtors: “How much do I need to cover closing costs?” Here’s his answer.

Purchase PriceAmount to Cover Closing Costs
$75,000 - $100,0006.00%
$105,000 - $145,0005.00%
$150,000 - $185,0004.00%
$190,000 - $255,0003.00%
$260,000 - $305,0002.50%
$310,000 - $359,0002.00%

Chart courtesy of Andrew Schmidt of WJ Bradley Mortgage Capital Corp.
You can reach Andrew and his team by phone at 480-621-4300 or 4324.

Here’s a slight hitch in  your giddyup: most banks will flat out refuse to contribute more than 3.00% towards the buyers’ closing costs. Which is a shame because a lot of cash-strapped first time homebuyers are shopping for homes in the under-$150,000 range.

We know a few tricks to soften ‘em up though.

If you’re a homebuyer who’s Realtor shopping, give us a call. We’ll tell you how we work, and you can decide whether you’d like us to represent you, or if you’d like to use other Realtors. Not ready to commit to a phone call? Read on, click around, you’ll get a feeling for how we work & who we are. When you’re ready, we’ll still be here.