I am purchasing my first investment property and was wondering about closing costs. I received an estimate which seems a little high. I was wondering what the experts thought about the following fees.

Sales Price/Value $200,990
1st T. D. Rate 6.875%
1st T. D. Product 7 YR INT ONLY OPTION
2nd T. D. Rate
2nd T. D. Product


1st Trust Deed Loan Amount $180,850
2nd Trust Deed Loan Amount $-
Combined Loan To Value 89.980%




Closing Costs


Lender Fees
Origination 1.000% $1,809
Discount 0.000% $-
Tax Service $77
Flood Cert $8
Document Prep $250
Processing $375
Administration $350
Underwriting $175
Wire Fee $15
Miscellaneous $-


Third Party Fees
Appraisal $375
Credit Report $16
Escrow $750
Title $1,300
Recording $100
Escrow Pad $500
Miscellaneous $-


Lender Fees $3,059
Third Party Fees $3,041
Prepaids $1,657
Down Payment $20,140
Seller & Lender Credits $(5,019)
Rebate Pricing $(1,000)
Estimated Cash to Close $21,878
Estimated Reserves 2
(After Closing) months
Estimated Cash Required
For Loan Approval $21,878

Money costs pretty much the same no matter where it comes from.

You can pay some closing costs in cash or build them into the loan in exchange for a slightly higher interest rate.

Where are you getting $3,041 for third party fees? From the numbers, I'd say you're being treated fairly. The origination fee is where you'd be paying out the most, but they're only charging 1 point.