Closing Costs (New York, York: sales, credit score, how much)

[InquiryMan]

Hello Everyone,

First and foremost, I'd like to thank everyone on this board for always offering advice when I need it.

Your comments have helped in the past, and so now I'm wondering if you could do it one more time. I'm currently in the process of buying a home. I make about 60K, and my wife about 45k. Our credit scores are 660 and 650, respectively. We've been pre-approved for 480,000, and a 5% interest rate. My closing costs, however, are 6% of the sales price. Is this too much, or does it sound about right?

Is 6% percent about the average in New York city?

[cleasach]

Sounds exactly right. I've been told to expect to pay six percent of the purchase price in closing costs. A 480k house purchase and a 105k salary? Yikes. Sounds way high.

[hnsq]

That sounds like a lot for your salaries as well...you don't want to be house poor.

On 105k? I personally wouldn't go higher than 250k for the house.


Your closing costs sound accurate though.

[vantastic10]

How much of a down payment are you going to put down?

[bluedog2]

You got approved for 480,000 @ 5% with an income of $105,000 ???? That makes no sense at all.You would never be able to make the payments with that income unless it is a 2 or 3 family house that will provide income to make up the difference.

The 6% closing costs doesn't sound completely out of line but make sure it's no more than that because I think 4 to 5% is more normal.

[Dewdroplet76]

We just closed on a $480,000 house in Westchester County - so it might be a little different - but our closing costs came to right around $22,000. Yeah... it hurts.