Closing costs vary by area. Get a more detailed breakdown of what they consider to be closing costs. For example, there are items that may need to be pre-paid as part of closing (for example, property taxes and insurance), but you will need to eventually pay these items anyway. They are paid at closing, but not really a cost of closing. Something as simple as the day of the month you close may also have a noticeable impact on the cash needed at closing.

I also suggest not paying points to reduce your interest rate, since you will not see the long-term savings unless you keep the loan to its full term. Most folks do not keep a mortage for the full thirty years.

Start now to find out what documentation they need to show the source of your down payment and other funding. The bank wants to identify folks who get some type of brother-in-law loan or other funding for the down payment, which could make it hard for them to afford the home in the future (e.g., BIL decides he wants to be paid back sooner). For example, if you tell them your down payment is coming from a Money Market fund at your bank they may ask for documentation of how long that money has been in your account.

Bruce

Sheesh!

Closing Costs - PA

Just want to add, it depends on when is your closing date, you may have to prepay more than 12 months property tax.

Also since you are buying from a builder you are also going to be paying for the builders closing costs. Check your contract it will be in there. It is SOP for the builder to push over all of his costs to you for closing except the commission he pays your agent and his agent so your closing costs and pre-paid expenses are much higher with new construction than they are with a resale purchase.