Wednesday, September 22, 2010

Closing costs soaring nationwide

Statistically, the national average for closing costs seems to have soared in 2010, up 37% to $3,741 from just $2,732 in 2009.
But that's probably deceiving. What's new this year is that a revised government-mandated good faith estimate took effect and it requires all projected expenses be accurate within 10%. That way, there are no big surprises at closing.
"Lenders can't low-ball this," said Lewis. "They can't surprise buyers like they used to
No matter how they're calculated, closing costs are a big and growing share of the cost of home ownership.
Bankrate reported that lender fees, everything from origination charges to courier or express mail charges, jumped 22.8%. Third-party fees - for things such as appraisals and title insurance - skyrocketed 47.2%.
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