How To Save Money On Closing Costs ?
When you are looking for a mortgage, you will have to pay closing costs to get the mortgage through. While some of the costs are fixed and cannot be negotiated, there are others that can be. This can help you reduce the overall closing costs and you can save money.
So, how to save money on closing costs? There are many ways to do this, and some of them are highlighted below:
As mentioned previously, there are costs that can be negotiated. Get in touch with the lender and find out which are the fees that can be negotiated and reduced. In case the lender is not willing to reduce some of the fees, you should look for another lender.
Get a good faith estimate for the costs. This is an estimate that is given to inform a potential borrower what he or she will be charged when the mortgage is going to be closed. Remember, different lenders have different closing costs and hence, the good faith estimate will vary from one lender to another. Make sure the estimate gives you the full list of the costs, so that you know what you are being charged for. In case a lender is not willing to give this estimate, then move on to the next one.
Select a mortgage lender that offers you the best possible terms and conditions, and closing costs. When you negotiate, the lender will reduce the costs, but do not let this be the sole criterion for deciding the lender. Check out the lender closely and make sure that you are satisfied with the service given. At times, you may end up paying slightly more for the closing costs, but the service given may offset the extra expense.
Many buyers request sellers to share part of the closing costs. With the real estate bubble bursting, the sellers may be more than willing to share this expense if they are getting a reasonable price for their homes. Also, it has been seen that many sellers themselves are burdened by mortgages and just to get rid of the mortgage, they may be more conducive to share the burden of closing costs.
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