We’ve been working with the same LO throughout our home buying process and have been asking them consistently about what our closing costs are going to look like for different homes. We are pre-underwritten so I assumed these would be pretty accurate. The closing costs estimates have consistently hovered around $20k for similarly priced houses. We’re finally under contract on a house and we just got the updated numbers on our initial loan docs, closing costs are coming in way higher at around $42k. Even if our LO was giving me “cash to close” numbers they’re still almost $10k off from previous estimates.
We’re using a Homeadvantage Loan with DPA assistance that is above the $548k threshold so we’re getting hit with an extra 1.5% fee on top. I know our closing costs are going to be brutal….but what I don’t want is to feel like because we’re this far in the process with them that we are stuck without leverage. Even if not, it feels like a bait and switch which doesn’t sit well.
Loan Amount: $641,725PMI: $11,230They’re supposed to send me updated numbers yesterday/today but didn’t deliver.I was pretty stern with our LO about the discrepancies and he said:
“Yeah that seems kind of high to me too. Let me review it with the team and get back to you since I think some of the figures are not accurate. I think they rushed to get it out before the long weekend so I apologize for that.”
I’m sitting on the fence on pausing the appraisal with them right now because $1500 for an appraisal seems heinous too. We’re in Seattle if that’s helpful. Experience with LO has been great before this. Suggestions on how to proceed?
Full closing costs estimates: https://imgur.com/a/N92U7LF