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How Can I Lower My Closing Costs?

I am purchasing a rental property and handing it over to my son to manage and adding him to the loan. He is a first time buyer 600 FICO, stated income @35k/annually, no debt. I am 66 years old, 30% debt, $275/annually income, 1.5 mil net worth, 800 FICO. Right now I am looking at closing costs of around $4,214 for prop valued at 80K on conventional loan. Would I be able to lower closing costs by not including my son on the loan? by HLimen3362 from Stockton, California. Mar 28th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

More info needed, but in general, certain closing costs are "Fixed" meaning, it doesn't matter if you purchase a $2M home or a $200K home, the fee is the same.. other costs are a variable fee.. meaning it's based on a percentage of the loan amount or the sale price.. Understand that there are varying things that account for your closing costs.. title fees, impounds, lender fee's, appraisal costs, etc.. without looking at your complete loan profile, it's impossible to advise you, but on the surface, $4200 on a $80K property seems to be inline.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 28th 2018
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

While not including your son might possibly lower the costs, a 600 score is really low for most loans available for an investment property (generally 620 minimum). It's possible many are fixed costs for any loan - but may be higher than usual due to his score. Ask your lender about options. Good luck!

Mar 29th 2018
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