If you listened to our first episode on closing costs (Here is Part 1) you know how particular I am about being accurate on closing costs. It is by far our most frequently asked question at CloseTrak and one I am reluctant to answer without sufficient information. One reason I am reluctant to answer is because no matter what kind of disclaimer I offer when giving the estimate – that number is what they will remember. I could intentionally estimate high, but I don’t want to scare the buyers into thinking it’s more expensive than it is. And if my estimate comes in low, then they will conclude I don’t know what I’m doing. There are many, many variables that go into preparing the closing statement as you’ll learn in this episode.
Joining me on this episode are Robin Hogue-Hughes, attorney at CloseTrak. Robin and I started working together when I just started in the closing business and she was our “copy” girl/runner. She knows the closing business from the ground up – she started makin’ copies and progressed to being a closer while attending law school. And now we’re proud to have her on board with CloseTrak managing our office in Bartlett. If you need to reach Robin you can call her at (901) 333-1357 or email: robin (at) closetrak (dot) com. Also, we have my father Mike Diaz, loan originator with Evolve Mortgage. Mike first started in the mortgage business in the early 80s and has worn a lot of hats in the real estate business – from running a mortgage company, to managing a real estate brokerage, to having an insurance agency. Mike brings a unique perspective to lending as he has worked on real estate transactions from so many different angles. If you’d like to reach Mike at (901) 337-1583 or email him at mdiaz (at) getevolved (dot) com.
Here’s What You Will Learn In This Episode
- How to review a closing statement
- Why closing costs are hard to pin down
- Is it cheaper to close at the end of the month?
- The difference between conventional, FHA and VA loans.
Here is a mock closing statement that you would review with your attorney at closing. In this episode, we start on page 2 of the closing statement which is where the closing costs are listed.
If you want to try your hand at calculating some of your closing costs, here are a couple of helpful links:
Shelby County Assessor – use their tax calculator to calculate property taxes, or you can search for a property and get the actual taxes. To calculate taxes on a property, look up the property and get the tax assessment. On residential property, the assessment is 25% of the tax appraisal. When using the tax calculator, be sure to input the tax appraisal amount and not the assessed value. Also, be sure to select the appropriate municipality from the drop down menu. This property tax calculator is only good for Shelby County, Tennessee and those municipalities therein.
Shelby County Register – this site has a calculator that can be used for computing your recording costs on your warranty deed and deed of trust. These costs should be same throughout all the counties in Tennessee. When we have a closing outside of Shelby, Tipton or Fayette, we usually call the register’s office to see if they have any particular requirements or fees.