Buying a house directly from a friend – closing costs

[warrington]

If you are buying a house for $250,000, and have to pay all the closing costs, what would be a good estimate for that fee. There is no realtor fees. The house has been in their family for 40 years. Do you have to get a title policy to get a loan for the house? What's the process that you go through to purchase a house, while obtaining a loan through the bank, without a realtor or anything.

[6.5 shooter]

I bought some property a while back without a realtor. If I remember right, the title policy was 1% of the sell price.

[JayB]

Go online to TREC (TEXAS REAL ESTATE COMMISSION) and get a contract. Fill it out. Take contract and earnest money to your title company of choice and let it roll. Go to bank/lender and fill out loan application.

Owners title policy not required BUT you will pay almost the same amount to get a loan policy. Spend the extra few bucks and get the owners policy to cover yourself.

The lender will give you a Loan Estimate that will break down what the closing costs will be.

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[jdg13]

Basically did this on my house. Had a realtor that was not very helpful so I got to learn the process on the fly. You'll be paying for a title search and the lender will make you pay for lenders title insurance. This will be on top of whatever fees the lender charges for the loan itself (not the down payment.) It's gonna be a few grand for all this. My house was $235k and I paid around $2500 for title (roughly 1% of purchase) and another $1000 in loan admin and all the other misc things. My advice is to have a real estate attorney draft everything up as far as the contract. Worst part of the whole thing was trying to get paperwork in order while title and bank couldn't figure out how to get their end done.

[Bill]

Select a title company you want to work with, set up an appointment say you’re shopping for a title company and go thru everything with them.


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[warrington]

Is there a big difference in title companies and their fees. Are their specifics that I need to ask them
A real estate attorney fee would be on top of the title policy and bank loan origination amount?

[Bill]

Buying a house directly from a friend – closing costs

Is there a big difference in title companies and their fees. Are their specifics that I need to ask them
A real estate attorney fee would be on top of the title policy and bank loan origination amount?

I don’t know, you can call 2-3 and ask to compare or somebody chime-in.

Yes attorney fees are extra. I’m not sure on a ‘simple’ sale to friend if a lawyer is needed. Good question to ask a title company as you ‘interview’ them. Of course if you ask an attorney, you already know the answer.


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[Tex_Cattleman]

Is there a big difference in title companies and their fees. Are their specifics that I need to ask them
A real estate attorney fee would be on top of the title policy and bank loan origination amount?

The cost of title policies/endorsements are set by the state of Texas. What they call their escrow fee will vary. That fee is usually $300-$400. That fee has nothing to do with whether you escrow taxes & insurance. It is payment to the title co for the work they do.

[Grayson]

If you are buying a house for $250,000, and have to pay all the closing costs, what would be a good estimate for that fee. There is no realtor fees. The house has been in their family for 40 years. Do you have to get a title policy to get a loan for the house? What's the process that you go through to purchase a house, while obtaining a loan through the bank, without a realtor or anything.

If you're using third-party financing, the lender will require title insurance policies.

[J Wales]

The fact that the house has been in their family for a long time is even more reason to get a title policy. Those are often the ones with the most title issues (missing probates, deeds between family members that they did on their own and are not done correctly, etc).

[BrianL]

Depends on a lot of factors:


Down Payment $X
Title fee- 300-500
lender title 1700
homeowner title 1700
Appraisal 500
Survey if needed 600-1000
Lender origination fees 0-2.5% of loan amount
Other lender fees - $500.00
If you escrow thru lender for taxes and insurance- one year cost of policy(approx$2500), plus prorated amount of taxes left plus 3 months of that average(approx$3000).
Filing fees- $150

[Hatfield]

For a sales price of $250,000 your policy is $1623, add recording fees and other fees i would count on $2,000. When you buy a lenders policy, you can buy an owners fee for around $100

[DFWPI]

Assuming this is a cash deal.
This is only a “estimate” based on a program I use in my business.


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[DFWPI]

Based on FHA loan


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[warrington]

dfwpi
the first one is if we go through Bank of America for a regular loan

and the second is if we go for a FHA loan?