Negotiating Your Closing Costs

It is naturally a big decision when you are planning to buy a house as it involves a huge sum and also anxiety filled with numerous doubts, questions and suspicion as to whether you are taking the right decision or making a wrong move. At one point you will start feeling that you are at risk of losing your investment and second moment you are thinking you are doing the right thing. It all makes sense, because this actually is a big decision and its essential that you go through all the pro's and con's before going ahead.

Closing costs are something that have been specially designed to confuse the buyer or may be it just seems so. Many of the buyers do not actually know what closing costs means and usually go ahead and pay whatever the fees are.

Its important that you have prior knowledge about what closing costs is before going ahead to negotiate the same and it should be noted that one can easily drop out from any negotiation regarding a mortgage at any point before closing. One should note that they pay only the amount of closing costs that seems feasible and legal, if any extra cost is added anywhere ask them to bring it down and if that doesn’t happen you switch your offer.

The financial institution or money lenders are supposed to provide you with a good faith estimate (GFE) within three days in an itemized format. This will give you an approximation of the closing costs of everything from charge of appraisal, lender's fee, and premium of insurance and payment of interest partially.

There are some amount of fees charged by brokers, money lenders and third parties. There is no need to let go or just speculate what will be what. Be straight forward and ask which fees are for what reasons accordingly. This is because it is very tough to guess which secured loan organization fees are and which are the third parties fees.
GFE fees are distributed through numerical codes which range from 800s to around 1400s. The general fees taken by all the lenders are around 800s for applications, commitment, organization, loan discount, broker, tax levying services and underwriting fees.

The lender mostly pay the fees mentioned to them without negotiating but actually all these fees are negotiable and can be bought down from their original mark up. But generally these benefits are not availed by the consumers and mostly the lenders have contracted them for a fixed price.

There is so much you can save if you negotiate in the 1100s section of GFE which consists of title search, settlement fees, title insurance, title exam and attorney's fees. Consumers are into habit of going and dealing with the title company referred by the real estate agent but it's not necessary to do so and one can find the title company in the same way you did for house and for the loan.