How Much Are Mortgage Closing Costs? | The Complete Guide

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0:00 How Closing Costs Work (And Why They Cost So Much)
0:25 What is Closing Cost?
1:02 Cash to Close
1:18 Down Payment
1:43 Minimum down payments
2:09 Closing cost
2:25 Adjustments: Earnest Money
2:51 Seller Credits
2:59 Lender Credits
3:04 Tax Proration
3:30 What's frustrating about closing cost?
6:32 Negotiating Seller Credit
8:16 Loan Estimate
9:43 Closing Disclosure
10:41 Closing disclosure walkthrough
11:57 Keeping Closing Cost Low
16:24 When is the cash to close due?
17:09 Charges Upfront
17:36 Closing cost be rolled into the loan
19:16 Refis
19:34 Seller Credits
20:34 Different loans = different closing cost?
21:56 Do you need to prove you have money?
23:05 How do you estimate yours?
Kyle Seagraves - NMLS 1701021
Only for educational usage. All calculations should be verified independently. Win The House You Love LLC is not a lender, does not issue loan qualifications, and does not extend credit of any kind. This is not an offer to lend and should not be used to make decisions on home offers, purchasing decisions, or loan selections. Not guaranteed to provide accurate results, imply lending terms, qualification amounts, nor real estate advice. Read the full disclaimer here: www.winthehouseyoulove.com/di...

[@msjtathe]

Just got my closing disclosure yesterday, I close on Monday 🙂

[@inekawalker2449]

How is your house ownership going?

[@msjtathe]

@@inekawalker2449 homeownership is awesome nothing like having your own. I bought a duplex and having trouble finding a good candidate to rent to. And of course you notice cosmetic details that you hadn't until living in the home. But overall no regrets and I have some diy projects to start when it warms up 🙂

[@markhouston7.334]

Which fha loan did you go or where do I start ?

[@WinTheHouseYouLove]

Congratulations! I hope you are enjoying your home.

[@tinaf600]

Congratulations sis 🥳

[@markpineda5404]

The simplicity in this video is unbelievable ! Great Job !

[@wowiesplace5520]

We won the house we love!! Thank you for all your videos it helped us so much when we are in the process of buying. We made an offer October 17 and we closed November 18. Your videos are so easy to understand and your voice is very calming it relaxes my nerves 😁😂. Seriously thank you for all you do 💕

[@itzesmi]

I’ve educated myself in the home buying process but this is the Most needed knowledge to know when purchasing a house! Great breakdown. Now we’re getting ready to save up more for closing cost 💲

[@WinTheHouseYouLove]

Glad it was helpful!

[@dnh31tlg10]

You explain everything so well. Thanks Kyle! 😊

[@imranhabib8872]

I am very thankful to you and watching your on each step of my home buying process and now I am on he stage of closing disclosure and the exact things I saw on that it’s help me to talk to my lender and negotiate as. Thanks very much againg

[@princesslopez4335]

I’m a so greatful for you and this channel. Thank you so much for taking the time to make these important videos and educate us on things people don’t really want us to know!

[@WinTheHouseYouLove]

You are so welcome!

[@towersroofinginc422]

Your videos explaining everything are truly the BEST!!

[@Silverdragon517]

Thanks for explaining it in such a simple way

[@JoshuaGraves]

This is really great, your videos are solid. It would be nice to show where the lender credit is on the LE, sometimes loan officers go "borrower paid" and charge the client for the origination fee instead of including it all in YSP. When a loan officer does this, for example the credit for closing costs will often times be the same as the origination fee.

[@drewcoleman738]

That is why the closing disclosure is the most important document when knowing who is paying for what

[@joelglass2575]

Thank you so much, I just got my CD today!!

[@uriah117]

This is perfect timing - Thanks for the video! :D

[@Pythonette]

When we thought we'd be getting FHA, I secured a 6% seller credit. Then, we qualified for Conv 97. So, as you know, can't get >3%. While searching and researching, I was led to believe that there were so many more options to help with closing/DP for low-income first-time buyers, but, I'm buying in NY state, and it's been a tremendous challenge, and I'm sweating bullets.

[@drewcoleman738]

The 3 percent thing is a willy nilly thing. If it's a recurring thing (like taxes) the seller can exceed that 3 percent. It's a weird caviat, but at 3% can exceed that 3%

[@QueenKunta]

Did everything work out?

[@chimichangas2783]

Yes! 👏🏼👏🏼👏🏼 Thanks for the upload Kyle! 😀

[@Jcov1984]

Very informative thanks Kyle for another great video

[@lovelyrobles]

Wish you were in California.✨ Thank you for the detail info much needed and appreciated.💕

[@reeda2647]

U are awesome thank you so much for the information it really help me out! I’m buying my first home now!🙂

[@Limor_SFV_LA_Realtor]

LA & SFV Realtor here! Great explanation for new home buyers!

[@WinTheHouseYouLove]

Awesome! Thank you!

[@CoachD77]

Glad this was on my feed. Hopefully I will be clearing to close today! New sub

[@timothyleebouvierstewart851]

Killed it again Kyle!

[@chrmnxpnoy]

My COE is next week. Exciting since this is my first home

[@stephanieholderfield2475]

Thank you for this video...

[@clarebear9263]

Well explained thank you 🙏🏽

[@psych007]

wow. this is the clearest, and most comprehensive yet easy to follow I have seen this explained. Thank you

[@WinTheHouseYouLove]

You're very welcome!

[@James-id5xq]

This channel is blowing up! Well deserved awesome content

[@WinTheHouseYouLove]

Thank you!

[@marcielicea5531]

Hands down the best channel for this content that I've came across. You explain thigs so well and thoroughly. You also don't yell lol

[@mohammedbouanani2403]

Thank you very much for good informations, very good communication skills!

[@theone9265]

See, that’s what I like, an understanding breakdown. Thank you !

[@WinTheHouseYouLove]

You bet! Thanks for watching!

[@luomanfei]

Got a question for you. We are buying a rental property that is 1/3 of the purchase price of of our primary residence but the closing cost is almost the same I think even more on the rental property. Primary residence is 5% down, 2.875 % rate and rental property is 20%, 5.99% rate. I am trying to make sense of that. Can you explain a little bit on that topic? Thank you!!

[@dj.1094]

Kyle can you do a video on new construction closing process?

[@NickinNashville]

This was a master class, and you did it in one take ,

[@jamesskipper252]

I just learned something from your video. I can offer over asking price if I need some help with closing costs as long as the house appraises for that amount. Wish I would’ve watched your video yesterday. I was outbid for a house because I offered list price with a $5k seller concession in closing costs.

[@WinTheHouseYouLove]

Thanks for watching! Best of luck!

[@Xtremeproducts]

I needed this

[@lifeisbeautiful9455]

Thank you for this… I want to buy a home next year. This was very informative 🙏🏽 🙏🏽🙏🏽🙏🏽🙏🏽

[@WinTheHouseYouLove]

Glad it was helpful! Best of luck!

[@stephenbeecher7545]

Question: Seller agrees to 3% of $400,000 sales price as closing cost credit. That is $12,000. Are reserves for impound accounts for tax and Insurance considered closing costs which qualify for seller credits? Also, if you paid your home inspector directly, does that show up on closing statement and credited by seller as a qualified closing cost?

[@MinhTucson]

Thank you ❤

[@joshstane5926]

Offer gets accepted but paperwork takes 30-45 days correct? While this is going on you can't move in correct because both buyer and seller can still back out until closing paperwork is signed. Is this all correct?

[@katherineweinsheim1988]

Do you have to run your credit to get a loan estimate from lenders? Do you ask what your lender fees are prior to getting pre-approved for mortgages?

[@kartickshirur9648]

Your videos are very comprehensive and helpful. Thank you.

[@WinTheHouseYouLove]

Glad you think so! Thanks for watching my videos. :)

[@jesseca20]

I love watching your videos. So informative!

[@WinTheHouseYouLove]

Thank you so much for your support, Jesseca! I'm really glad you find my videos informative. Let me know if you're ready to start on a pre-qualification by visiting www.winthehouseyoulove.com/lender or email me at [e-mail].

[@peacebeteal]

Can you do an updated version of this? Or is it the exact same?

[@jablodge5204]

I needed this today! I'm at the "appraiser" stage of buying a home and I'm a nervous wreck. Lol

[@tdf123emcee2]

I feel you! I'm in the same boat but my offer just got accepted! I a nerveous wreck too and really really hoping all goes well with the inspection.

[@jablodge5204]

@@tdf123emcee2 congrats and good luck! The next 30 to 45 days will be the longest month if your life. Lol

[@arosad]

We just cleared the appraisal stage and let me tell you, it’s the most stressful part. Once you clear that, it’s not as stressful.

[@jablodge5204]

@@arosad I'm sooo ready for it to be over! I'm gonna gain 5 tons the way I'm stress eating during the wait. 😂

[@Janzen0927]

sameeeee

[@katherineweinsheim1988]

Do construction to perm loans have the same closing cost ? Does the bank give you a closing disclosure? What if someone didn’t have all the closing cost ? Does the contract just end ? Or is there a fee that s charged if the clients didn’t do their homework and know about the extra costs?

[@rrg7701]

I have learned a lot from watching your videos. Thanks a ton!

[@WinTheHouseYouLove]

Glad to hear it! Thanks for watching!

[@AvantiprodsClient]

Great video, thank you!

[@WinTheHouseYouLove]

Glad you liked it!

[@shannelbarrett-hawthorne7457]

Awesome video. Great value. Just information I needed

[@WinTheHouseYouLove]

Awesome, thank you!

[@mariavera6224]

Excellent! This is really helpful

[@WinTheHouseYouLove]

Glad it was helpful!

[@MrFantasma4]

Hi can you make a video of this process buying a new construction. Because i want to know what to expect. I just get the disclosures paper with 89 more pages 😅 now what ? Nice videos… really helpful

[@sanbetski]

very clear. thank you

[@WinTheHouseYouLove]

Thank you! :)

[@daveysodyssey9990]

I am closing next Monday. My heart is so full! I can’t WAIT!!

[@WinTheHouseYouLove]

Wow! Congratulations!

[@amandao365]

Thank you for this- you explained this very well and made me understand the process better.

[@WinTheHouseYouLove]

Glad it was helpful!

[@chelseaj9286]

Could you please do videos for sellers? I might need to sell in less than the 2 years for health reasons.

[@KINTOSOL007]

I got pre approved for $170,000 FHA loan and I got $13,000 do I need more for closing cost & Down payment

[@JM-fi7uc]

Every state is different! Check your region and ask your broker and mortgage lender what closing costs are in your area. In some parts of New York you have to deposit 12 MONTHS of property tax in escrow at closing! Some counties charge a mortgage tax as high as 1.5% of your mortgage!

[@WinTheHouseYouLove]

Great addition!

[@jimcetnar3130]

Awesome content!

[@WinTheHouseYouLove]

Glad you think so!

[@NewLifeChallengers]

Awesome video!

[@WinTheHouseYouLove]

Glad you enjoyed it. Thanks for watching. :)

[@sierraon28s]

I’m about to close escrow my question is what happens to my $10,000 deposit to open escrow ? I’m looking at $11,000 for closing cost & $14,000 down payment

[@debbiedavis7216]

Excellent explanation!

[@WinTheHouseYouLove]

Glad you think so! Thanks for watching! :)

[@wendybaby83]

great video!

[@WinTheHouseYouLove]

Thanks!

[@realtorjulielakin]

I’m a new Realtor and found this video very helpful 😊 thank you!

[@WinTheHouseYouLove]

Wow! Thanks for watching. :)

[@srosellerjr]

I am closing on Tuesday, and I needed this. I feel like they ask too much money, but now it kind of makes sense.

[@WinTheHouseYouLove]

Nice! Best of luck!

[@Adolfo45tovar]

How much did they ask for? If you don’t mind. I feel they are asking too much for my closing cost

[@alejandromorales5822]

Great video, 👍 👌 👍 very informative. Thanks

[@WinTheHouseYouLove]

Glad it was helpful!

[@claramayfield9232]

Thank you for another informative video. Does a lot of this information apply to new build construction as well?

[@sebastianliu2009]

Yes. It does.

[@ajahogan9634]

Super helpful

[@WinTheHouseYouLove]

I'm glad it was helpful. Thanks!

[@terri3486]

When doing an FHA loan can the mpi be rolled in the loan?

[@madpennfoodchannel7501]

Thank You 🙏

[@WinTheHouseYouLove]

Any time! Best if luck!

[@N4TER4DE]

I would really like to know why we’re not allowed to roll closing costs into the mortgage.

[@Blue_Angel.555]

Best explanation on closing cost online. Thank you for taking the time to offer such a detailed explanation.

[@WinTheHouseYouLove]

Thank you so much for watching!! :)

[@linda27189]

Great video....you are like the best mortgage teacher ever lol. In this crazy seller's market have you noticed buyers wrapping the closing costs into the loan? Or do the sellers want all the extra money for themselves? Like with the example you gave 300k house...9k closing costs...offering 309k and asking the seller for 9k for closing costs.

[@WinTheHouseYouLove]

Around my area in Ohio yes!

[@drewcoleman738]

In Texas it isn't that way unless you up the offer price...and that is iffy

[@gottiic6529]

Question my monthly payment went up higher on my CD but it states im paying for my home owners insurance at closing for the year is the 137$ monthly payments for homeowners still added on the mortgage?

[@WinTheHouseYouLove]

You have to pay the full year of insurance up front. In addition, you make monthly payments via your mortgage payment into an escrow account to pay the upcoming years insurance payment.

[@marijkerittmann7607]

Is it at all possible for you to do a video on land loans and construction loans?

[@charleswagenseil5496]

Very helpful, thanks for sharing. If you plan on using funds from a non-retirement brokerage account for the down payment, will lenders accept the most recent brokerage statement to verify ability to make the down payment? Or will lenders require you to liquidate shares prior to getting pre-approved for a mortgage?

[@RobMonTV]

I believe he's mentioned that in instances like this, liquidation would be necessary.

[@rubycio]

Just found this channel, in the nick of time too. I want to purchase a home later this year.

[@WinTheHouseYouLove]

Welcome aboard! I'm not sure if you already saw my Ultimate FIRST TIME HOME BUYERS GUIDE 2021 video. This might help you. Here's the link: kzbin.info/www/bejne/rnPXfICrpZidjKc

[@Silverdragon517]

What is the difference between interest rate and APR on the closing documents?

[@drewcoleman738]

Interest rare is what you pay on the principal balance. APR is taking into account other costs. APR comes into play like price per square feet. Like if these five houses are $150 per square feet and this sixth house is $250 per square feet, what’s up with that?

[@aacts2219]

Fantastic info. Wish I this info when I purchased my 1st home 20 yrs ago. Do you, by chance, know how often people end up actually having issues with title and had to use the title insurance. I've bought and sold homes over the yrs, especially in new suburb subdivisions ( the ones built with all the records available in digital form and where the home had only 1 owner with no liends, etc. & I was the 2nd owner). It seems like title insurance was a waste, especially when I sold that home in 1-3 yrs after leaving there.

[@WinTheHouseYouLove]

I don't have statistics, but it may be worth talking with a title company about it!

[@konkuringu]

If we have money divided up into different bank accounts, should we move down payment/closing costs all into just one? Or do we show bank statements for multiple banks? Thanks for these videos! They're very helpful as we begin to think about buying a home.

[@AnthonyLongoria-Kun]

Silly question, but when are you supposed to pay closing cost. I'm assuming at the end right? I'm barely at option phase and I'm on the edge hoping everything works out 😅

[@libatako]

At the end when you sign all the documents, everyone is there from the lawyers to the agents

[@laurabook9492]

When the seller is signing legally giving you ownership of the he house, you get the house keys and both you and seller pays their portion of closing costs. On that day the house is yours to move in.

[@drewcoleman738]

On the day you sign the note for a purchase is when you pay the money to finalize the loan. If you sign on a day, or after the fed cannot wire the funds, you won’t get the home until then. Funded is what counts for when you are allowed the keys.

[@CynthiaOvv]

So if in our offer we asked for closing costs. Does that mean the only thing we pay for is the down payment? Or do we pay for inspection and appraisal? Can you do a video about that process, and who chooses the inspector and appraiser.

[@chonkydonklage]

You pick the inspector (usually your realtor has one ready for you); you pay for the inspector; you pay for the appraisal but the lender picks the appraiser.

[@dj.1094]

Yes you are responsible for paying for the inspection and appraisal. Depending in the type of loan you get you may still need to come out of pocket for closing costs.

[@drewcoleman738]

What you need to understand is that if the seller gives you concessions, it will be limited to your LTV. say you’re putting 3% on a primary, the concession is capped at 3%. Even if they pay for the appraisal and inspection at close, there are caps for concessions. Your broker should be able to steer you through that

[@kevinkidneyy]

i love this guy !

[@WinTheHouseYouLove]

Thank you so much! I'm glad you're finding the information helpful. - Kyle Get pre-qualified at www.winthehouseyoulove.com/

[@emac6961]

Is this for new construction homes or older homes?

[@dereckhenderson2727]

Awesome

[@WinTheHouseYouLove]

Thank you!

[@TechNextLetsGo]

OMG why do they not teach this in school, it's so frustrating and overwhelming.

[@harmeetsokhi]

Thanks for the informative video... Have a query.. If the ufmip on an fha loan is 4000 $ and the borrower pays 1000 from his pocket and gets 3000 added to the loan, what value will be mentioned in the closing costs section as a mortgage premium?

[@WinTheHouseYouLove]

The whole premium legally has to be disclosed. In that situation, the Loan Estimate would list: - FHA UFMIP $4,000 - Financed Closing Costs $3,000 ^ So $3,000 is in the loan amount and $1,000 of it is paid in the closing costs total.

[@harmeetsokhi]

@@WinTheHouseYouLove Thanks... Really appreciate it

[@domesticatedwolverine4152]

What an incredibly complicated process this is.

[@MAGAMAN]

My closing costs are almost more than my down! My lender is awesome though! Definitely goes above and beyond. The same with my realtor. I really lucked out!

[@maolo76]

How can your closing cost bemore than down?

[@tb1235]

Often times there's a brokerage fee too on the buyers agent end.

[@WinTheHouseYouLove]

Good point. Thanks for watching!

[@dottiEpre]

Thank you so much 🙏🏾 my husband and I have our dream home. Your videos are great, you are great, Our realtor is great and our lender is great. This process has been easier with the background you give. Underwriting has been a bit of a pain though but hoping to close soon 😊

[@WinTheHouseYouLove]

Thanks for watching my videos. Best of luck!

[@SatanicPanic66]

how do i calculate how much i should make sure to have above the 3.5 or 3% to ensure im not caught out on closing day?

[@WinTheHouseYouLove]

Your lender can give you an estimate of all closing costs

[@realtorgamechanger6192]

Are discount points mandatory??

[@ivetteguarin]

My loan officer told me the seller will credit the title policy at closing. Is this true?

[@jayvet8402]

Do you have any videos on the best home warranty company? I close this week.

[@musiclover78599]

Unfortunately none!

[@liltandymoultrie7849]

hi? I had Lender ask me how much i had too put down on a house . he told me i had a 3.5 so i said i have 10.000 down and he said a litter more money. and my credit score is 760 so why he said more money down

[@wislenebordenave8499]

Please help me out to understand, why house is still 361.000 after the seller gave me 6.000, and I brought on the table at closing cost 27.000 thousand. 2nd when I’m making my monthly payment only 363 hundred going towards my principal more than 1,600 hundred going towards tax?

[@joshuakeeton8472]

My wife and I are currently trying to win the house we love. At what point do you ask for seller credit? Even if it's new construction?

[@THEGAMINGHELP101]

If it's new construction they need to fix it.

[@drewcoleman738]

If it’s new construction, always ask for the max seller credit as the most likely will give it to you. You might have to use their title company or lender, so that is something to think about as the rate or charges might mitigate the actual credit.

[@perfectimperfection117]

Credit Union non profit less money to close.

[@nitra79]

If you are buying new construction do you need owner title insurance?

[@drewcoleman738]

You never need owners title insurance. Might want an attorney to check up though. Owners insurance isn't what you thing it is.

[@rosiebelf955]

This video is perfect I will closed next week I was stressful

[@WinTheHouseYouLove]

Congratulations on closing next week! The home buying process can definitely be stressful, but it's so rewarding once you get those keys in hand. You're almost there! Wishing you all the best in your new home.

[@Xtremeproducts]

I’m closing in a couple days. Yesssssss

[@laurabook9492]

Congrats

[@Xtremeproducts]

@@laurabook9492 you’re a BIG part of it especially with understanding the LE and Closing Disclosure

[@Xtremeproducts]

@@laurabook9492 thank you

[@Tyler-sk2rm]

Are closing cost the same if you pay cash for a home?

[@thepeopleslender]

No

[@godisgood4686]

I’m so Paranoid right now. What about the interest rate. My bank sent me A loan estimate with a 5% and then sent me 2 hours after another one with 6.5%

[@tiana7780]

Same thing happened to me