My sister is buying a house and I think she's get taken advantage off?

Question

She got approved for a USDA loan, she found a house for $77,500. The sellers agreed to pay $4100 of the closing costs. Now she was told she has to have an elevation survey for $550, right after shelling out $400 for the AC duct cleaning or something. I thought all that stuff is supposed to be included in the closing costs?

? · Accepted Answer

You are incorrect. The closing costs only relate to the settlement...so the attorney fees, title fees, escrow fees, document fees, etc. would be part of the closing costs.
An elevation survey and duct cleaning are separate.

? · Answer

The mortgage has NOT been approved yet.  The elevation survey is to see if the house is in a flood zone.  If it is then she will have to purchase Flood Insurance.     This as with the duct cleaning are NOT closing costs but costs incurred for mortgage approval.

Bill · Answer

Who is requiring the elevation survey, the lender?   If so, the loan must not be finalized.   She may be pre approved for a potential loan but the property must qualify in order for it to be granted.  She would be responsible for all of her lenders requirements unless the seller agrees to help.    Good Luck

Landlord · Answer

No.   I am clueless why she needs the survey, but that is not a closing cost.    Cleaning and repairs to the property are not either.  

Your sister is not being taken advantage of.

Anonymous · Answer

No she is not being taken advantage of.  Closing costs do not cover these things and quite frankly she should consider herself lucky that she is getting closing costs.  I have never asked anyone for closing costs and I have never given closing costs to anyone. I do not know of another country where closing costs are expected.

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My sister is buying a house and I think she's get taken advantage off?

5 Answers