Calculating closing costs has long been problematic for many investors.  In part because not all of the known costs have been available until the day before closing, and in part because certain elements of the process are unknown to the investor.  Closing costs can be a significant expense, and Realty Analytics V 4.01 goes a long way toward identifying these costs and in calculating a fairly accurate estimate.

 

The model will make the proration calculations for rents and taxes, it will determine prepaid interest, and come reasonably close in estimating title insurance charges.  It will even allow you to change the day and month of settlement to see the financial ramifications.

 

What it can not do, however, is determine what your attorney will charge, nor can it determine what "junk" fees the lender will impose.  The model provides data input cells for you to enter these variables - thereby making the closing cost estimate as accurate as is possible under the conditions.

 

The worksheet has the look and feel of a HUD-1 Settlement sheet, and there are several features that have been built into the form that make it fairly simple to use.  Take a few minutes to familiarize yourself with the closing cost worksheet to see how it works.  Then begin to enter drivers and data into cells that ask for input.