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How much for closing costs with no mortgage or loan?
Posted on December 13th, 2010 6 comments
days_o_work asked:
I am planning to purchase a 200,000-250,000 home in the state of Michigan, outright with no mortgage or any loan.Hypothetically, if I purchase a home for 200,000 what will be my total outlay of cash before the home is actually mine? Assuming I am not taking out any loan to finance this home.
Also I am not sure how much I am going to be able to negotiate for zero closing costs as I am already planning to put in an offer about 10% under the listed price.Finally, why does the owner care if its an all cash offer or not? They get their money either way, just from me and not a finance company.
MitchellRenting & Real Estate Cash Offer, Closing Costs, Finance Company, Hypothetically, Michigan Mortgage, Money, Mortgage Loan, Outlay, State Of Michigan6 responses to “How much for closing costs with no mortgage or loan?”
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2-3 thousand but I would say closer too two. You will pay title ins. to protect your self and a years worth of home owners ins., again to protect yourself. You will have to pay transfer tax to the state of Michigan and what ever fees the escrow company will charge. If you have not yet bought the home I would advise you to put in your offer that you are an all cash buyer and that you want the seller to pay all of your closing cost. The all cash part will show them that it is a solid deal and they will not have to worry about you being approved for a loan. This will entice them to help you out with the closing cost and thereby save you some money. Good Luck.
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SexyTrojan December 16th, 2010 at 05:13
It’s the same as it would be if you financed.
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user6454353 December 18th, 2010 at 07:55
If you plan on doing that make the an offer of ZERO closing costs, after all, you are paying all of it and the bank/owner will still profit.
Seriously, you can probably get it done. After all, how many people do they have lined up to pay in full?
Although, they may try to stick it to you with unnecessary expenses since the bank won’t be making a fortune in interest payments from you.
Unless it’s the house you really want i would shop around for the ABSOLUTE best deal. Once it’s done, it’s done! -
satarnag December 19th, 2010 at 21:36
It’s whatever you negotiate. Personally, for an all cash offer, I would have the seller pay for everything.
Regards
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bryan l December 21st, 2010 at 00:58
with a cash in hand for the purchase i bet you could get the sell to pay for it.
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Jill J December 23rd, 2010 at 06:33
The fees are not the same with a mortgage. With a mortgage there are lender fees, broker fees, additional settlement fees, appraisal, inspection (if required) etc.
If you are paying cash the closing fees should be minimal. I am in PA not MI so I do not know if there are any additional fees.
Typically there is title insurance. There is a chart of the fees are based on the price of the house. You will need to contact a settlement company to handle the deal anyway. They can give you the fee. They may charge a closing cost or attorney fee to handle the closing but I usually have this waved. The highest fee is transfer taxes. There is state, county and school or local trnf taxes. In Pittsburgh, PA it is 4% it is probably less in MI. It will vary from area to area. They seller and the buyer usually split the trnf fee. The settlement company can tell you what the % in that area is. Jill
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tbear December 15th, 2010 at 02:02