Closing Details

The numbers I'm getting are from my closing statement, also known as a HUD-1. It's called a HUD-1 because the form is a standard U.S. Department of Housing and Urban Development form...in fact, it's their form 1!

Anyway, the numbers worked out such that the sales price was $39,500 with an assignment fee of $5000 (so in effect the price to me was $44,500. My total closing costs were a trim $4251.

Included in these closing costs were:

Loan origination - $1275
Appraisal - $325
Flood cert, underwriting fee, doc prep, etc. - about $400
My insurance - $400 (for 1 year premium)
Title examination - $55
Closing fee - $125
Title search - $125
Title insurance - $401
Recording and doc stamps - $600
Intangible tax - $131
Survey - $275

This isn't an exhaustive list, but this gets the high points. I provide this so you understand that lots of money is sent around by the closing, or title company. Everyone's got their hands out in a real estate transaction.

Do I let that bother me?

Heck no! There's still plenty left for me to complete this rehab, AND plenty of equity in this property for me to later refinance or sell.

As I mentioned yesterday, I got much more mortage than what this house cost. In fact to begin this rehab I'll have $21,000 in a contruction account. I'll pull this money out in probably three draws.

The first will be $10,000 which I have already requested and will have in hand any day.

Now, we start rehabbing!