Generally, these costs can represent about 3 to 4 percent of the mortgage loan you are applying for. If you can’t provide them, you may be able to negotiate terms with the seller and stipulate a more suitable deal in the sales contract as a contribution.
Experts say buyers should begin the process by asking the person/institution who will facilitate the mortgage procedure which fees are negotiable and which are fixed, just to know in advance where you can save some money. We’re usually geared towards negotiating a sales price quickly, which is essential, but since closing costs are indispensable, it’s vital to know how to get the most of out this opportunity.
How to Deal With Closing Costs?
- Let’s Talk About the Cost of the Title
Remember that a title for a home has its insurance, and this may vary throughout the US for all types of properties. You can even look for a title and settlement company that is less expensive than the one your lender recommends; however, title insurance is sometimes included in the liquidation services of the new house. Our recommendation is to find and hire another company where title insurance is more affordable.
- Your Lender’s Fees
Not all lenders have the same fees for the provision of their services; some are affordable and others are costly. The choice of the right lender is due to many factors, for example, some of them may offer lower rates for customers with checking bank accounts, as is the case with Bank of America, which implements a strategy where it offers its customers a reduction of $600 in closing costs if they choose the bank as their principal lender.
- Closing Day
Let’s not forget that the day of the month in which the mortgage closes can have a notable impact in the final cost, it’s not the same to close at the start of the month that to a near end, the decisions and interest rates can change drastically. It is recommended to close in the last days of the month, since it’ll help protect your budget.
An estimate of your closing costs, coupled with an appropriate budget, ensures that you will be able to find a home within your price range. However, don’t move so fast because you can miss serious opportunities. So, compare mortgage lenders and service providers to minimize your closing costs. Here are some key extra points:
- Look for mortgage lenders, compare the loan estimates you receive, and continue the process with the lender that gives you the best terms.
- Three business days before the closing date, the lender you choose should give you a five-page closing disclosure form with the final terms.
- You should carefully examine the closing disclosure and consult with your real estate agent, loan officer or attorney.
AFTHA can help you reduce costs using methods we have developed through years of experience with our satisfied customers. All of our resources are geared towards assisting clients to overcome their closing costs without affecting their initial budget. Want to know how? Contact us now for more info!