How to Save on Real Estate Closing Costs

When purchasing real estate or refinancing a mortgage loan you will need to be prepared to pay closing costs. Closing costs will vary depending on the city and state you are buying in, the cost of the real estate, the size of your down payment and the professionals that you choose to use when closing.

Difficulty: Moderate

Instructions

1. Shop around when choosing a mortgage lender. Be sure to compare not only the Interest Rate being offered, but also the amount of the fees being charged on the loan. Ask lenders to provide, in writing, a Good Faith Estimate (GFE). This GFE should provide a list of fees that will be charged and an estimate cost for each one.

2. Learn the lingo. Research closing costs and the fees that you will be expected to pay. Ask the lender to explain any fees that you do not understand. Some lenders are willing to negotiate on fees so they don't loose you to another offer. Ask the lender if the fees are subject to change at closing.

3. Use a closing costs calculator to make sure the total figure you are quoted is close to what the calculator says you should be paying. You can find closing cost calculators on the Internet.

4. Warn the mortgage lender or broker in advance that you will not pay inflated closing costs and will require receipts at the time of closing.

5. Price compare when choosing an attorney to handle the closing. Find out if the attorney's fee includes all title and notary fees or if you will have to pay extra for them.

6. Ask the seller to pay closing costs. Realtors often using closing costs as part of the negotiation when selling real estate.

Resources

• Closing cost calculator

[smc61]

on 10/29/2008 In regard to Who Can Help with Closing Cost and Tips & Warnings I have a good suggestion for making sure you get the closing costs you were quoted. Being in the mortgage business for the last 15 yrs I can tell you that you still have a couple of options to make sure that you were not unfairly overcharged. Your first course of action should be to get a solid comparison between the Good Faith Estimate and the HUD-1. One very helpful site is Closingcostfax.com. The site is run by software that compares the Good Faith Estimate to the HUD1 in a matter of seconds and provides you with a side by side comparison to any changes that took place from the original Good Faith Estimate to the HUD-1. Once you have the comparison in hand send it to the originator and ask for a detailed explanation for any cost that changed or were added to the HUD-1