Help Needed! Closing Costs on my first rental property

[Neo]

I'm closing on my first 4-family rental property in about 40 days. I received the fee worksheet and it seems very high. The property is only $101k. The down payment will be 25%, so the loan will only be about $75k. Below are the actual fees on the Fee Worksheet. Between pre-paids and closing costs they are totaling $7,610. Does that seem really high to anyone else?

Looking for thoughts on if any of these charges are BS, overpriced, unnecessary, etc. Thanks!

FEE WORKSHEET:
Discount Fee Memo Item - $1,136.25
Appraisal Fee - $500
Credit Report - $32.50
Tax Service Fee - $72.00
Flood Determination Monitoring Fee - $4.00
Application Fee - $350.00
Processing Fee ($450.00-L) - $450.00
Appraisal Management Company Fee - $140.00
Automated Underwriting Fee - $20.00
Underwriting Fee ($400.00-L) - $400.00
Electronic Closing Fee - $15.15
Pre-paid Interest - $259.86
Pre-paid Homeowners Insurance Premium - $1,000.00
Title-Closing Fee - $560
Title-Owner's Title Insurance - $376.75
Title-Lender's Title Insurance - $304.00
Title-EPA Endorsement - $75.00
Title-Survey Endorsement - $50.00
Title-Closing Protection Letter - $40.00
Title-Restrict/Encroach/Mineral - $150.00
Recording-Deed - $28.00
Recording-Mtg - $212.00
City/cty tax/stamps Deed - $202.50
State tax/stamps - Deed - $101.00
Property Inspections - $600.00 (this will be paid out of pocket by me and wont' be this much)
Homeowners Insurance - $249.99
Hamilton County taxes - $364.34
AGGREGATE ADJUSTMENT - -$83.33

GRAND TOTAL - $7,610.01

[marty998]

Try paying stamp duty in Australia. Then come back and complain to me :)

Ignore the prepaid interest and prepaid insurance premiums... you are going to pay those items regardless, and pay them every year.

However, what its the 1st item...Discount Fee Memo Item?

[Neo]

I think the first item is code for buying a point. It should go away by the time we close bc I recently raised my credit score dramatically.

[NoNonsenseLandlord]

The fees seem excessive.  Take out pre-pays and taxes.  Ask for an explanation of each one, BEFORE you close.  Get another estimate from a different title company.  Find out what fees are lender required, and which are closing company expenses.

The title company should be able to explain them.

Discount Fee Memo Item - $1,136.25
Appraisal Fee - $500   Prob OK
Credit Report - $32.50  Prob OK
Tax Service Fee - $72.00  What is this?
Flood Determination Monitoring Fee - $4.00   Prob OK
Application Fee - $350.00  What is this?
Processing Fee ($450.00-L) - $450.00 
Appraisal Management Company Fee - $140.00  This is BS
Automated Underwriting Fee - $20.00  This is BS
Underwriting Fee ($400.00-L) - $400.00 Prob OK
Electronic Closing Fee - $15.15 This is BS
Title-Closing Fee - $560   Seems high
Title-Owner's Title Insurance - $376.75  Prob OK
Title-Lender's Title Insurance - $304.00 Prob OK
Title-EPA Endorsement - $75.00 Prob OK
Title-Survey Endorsement - $50.00 Prob OK
Title-Closing Protection Letter - $40.00 This is BS
Title-Restrict/Encroach/Mineral - $150.00
Recording-Deed - $28.00 Prob OK
Recording-Mtg - $212.00  This is high
Property Inspections - $600.00 (this will be paid out of pocket by me and wont' be this much)
AGGREGATE ADJUSTMENT - -$83.33

[Neo]

Thank you for the itemized reply. Thats exactly the expertise I was looking for. The sad part is, I work for the bank giving me the loan! They dont mind ripping off their own employees.

[Blindsquirrel]

 If they operate in your area, I recommend Union Saving/Guardian savings I would shop around as that is higher costs than I have ever seen.

[Neo]

Funny you mention that. We are working with Guardian but they were slow in getting back to us so this fee estimate is from one of their competitors. I signed and mailed in the loan paperwork yesterday but we don't close for another 40 Days. By signing those documents am I now locked in with this company or can I still switch to Guardian if they come back with better costs?

[Blindsquirrel]

   You can still go with Guardian, no problem. You are not committed until you close and sign the mortgage and the note.
Fellow I have dealt with for years is roverbeck@guardiansavingsbank.com  Rob Overbeck.

[Neo]

Update: went to the broker who got me the loan on my personal residence and asked him for a quote. Estimated closing costs from him are $1,100 cheaper than the bank I work for. And the interest rate is .25 lower.