What is considered in Closing costs when buying a home?

[Cherokeekid88]

So, the fiance and I just bought our first house and we got our loan package in the mail and we were looking it over and trying to figure out why we were having to send them a check for the appraisal?
I thought the appraisal was part of the closing costs? will I get that money back at closing?
Also, they have our home owners insurance set at $800 a year.....which is VERY high. Guy I work with has a nicer, more expensive house than I, and pay over $200 less a year than that....My mortgage lender has been on vacation this week, so I haven't been able to get in touch with her, but was just wondering if when they give you a good faith estimate, is it usually on the high side?

 

[BrianGreen]

My appraisal fee was included in the closing costs. You will pay for it one way or another. Either up front, or over the life of the loan plus interest. Have you gotten a quote on homeowners or is that just a guesstimate in your loan paperwork. They usually put a little higher number in the estimate. When you get a quote on homeowners, send that to your loan officer and they will modify the estimate to match what your insurance quote is.

 

[Cherokeekid88]

the only thing that I have seen is the Good faith estimate that came with my loan package...I just didn't want to sign it and mail it back untill I figured everything out...I know I can get Homeowners insurance through BB&T (thats who is doing my mortgage) but I get a 10% discount through travelers insurance through my work...so I will probably end up going with them them....

 

[RatLabGuy]

YOU get to pick your homeowners insurance, that is not set my the mortgage lender, the realtor or anybody else. The only involvement the lender has is that (1) they probably have specific requirements for what/how much coverage there is, and (2) IF they are handling the annual escrow to pay it they need to know who to send the check to.
With our most recent mortgage I did a lot of shopping on this, yep a lot of variance out there in rates. For us the better deal was with Liberty Mutual.
just liek w/ auto ins you can select your deductible, how extensive the coverage is etc.

 

[broncosbybart]

x2 for Liberty Mutual. Based on what you are looking at, it sounds like you have little or no money saved. You WILL pay for that in the long run. Closing is around 3 percent of the loan (round numbers). You might be able to tie them into your loan or you might be able to negotiate the seller into paying them. No money down loans bite in the long run. You'll see what I mean in a few years. I would have lost a ton of money on my first house (bought it out if college) if I didn't have 3 roomates paying rent.