Posted on: 30th Sep, 2006 07:30 pm
i'm in the process of buying a home and the application is loaded with fees. although i've done research, i'm only coming across terminology not specifics on legality of how much is being charged. i'm a 1st time homebuyer and am overwhelmed but seeking guidance on what to look for and expect.
Hi,
There are many different kinds of fees associated with the closing of a mortgage loan.
You can go through this article to know more about the general costs that you will have to pay at the time of closing: Mortgage Closing Costs.
Thanks
Colin
There are many different kinds of fees associated with the closing of a mortgage loan.
You can go through this article to know more about the general costs that you will have to pay at the time of closing: Mortgage Closing Costs.
Thanks
Colin
Hi Indigo,
The loan fees comprises of fees charged by the lender or broker as well as the third parties involved. You can ask the lender to breakdown the fees listed in the application so that you are aware of the costs you are paying.
The lender may have provided you with a Good Faith Estimate. Using this estimate, you can separate the costs paid to the lender and the third parties so that you can negotiate the fees charged by lender.
The best thing will be to gather the fees charged by different lenders and then compare. This will help you to negotiate with your lender to waive or reduce some of the fees he has asked for.
Thanks,
Sara.
The loan fees comprises of fees charged by the lender or broker as well as the third parties involved. You can ask the lender to breakdown the fees listed in the application so that you are aware of the costs you are paying.
The lender may have provided you with a Good Faith Estimate. Using this estimate, you can separate the costs paid to the lender and the third parties so that you can negotiate the fees charged by lender.
The best thing will be to gather the fees charged by different lenders and then compare. This will help you to negotiate with your lender to waive or reduce some of the fees he has asked for.
Thanks,
Sara.
You can negotiate with the lender to reduce some fees. In this competitive market, the lender may agree to it in order to get your business. You can also negotiate with the attorney on his or her fees. The closing costs (the total sums up to 3-5% of the loan amount) which are likely to be negotiable either with the lender are application fee, origination fee, points, credit report fee, lender's attorney fee, document preparation fee, etc.
If you think that the fees are quite large, you can try and reduce the cost by negotiating the items such as title insurance and title exam.
Most borrowers avail the services of the title company selected by the lender. You can shop for title insurance from a suitable title company and thus keep the costs in this category to the minimum. If the seller has owned the house for several years, ask the title company if it can give you any discount.
You can also reduce the costs on homeowners insurance policy by shopping for yourself with the help of a real estate agent or an insurance agent.
Most borrowers avail the services of the title company selected by the lender. You can shop for title insurance from a suitable title company and thus keep the costs in this category to the minimum. If the seller has owned the house for several years, ask the title company if it can give you any discount.
You can also reduce the costs on homeowners insurance policy by shopping for yourself with the help of a real estate agent or an insurance agent.
Some fees are not negotiable such as on items like taxes, county stamps, recording fees, prorated interest and reserves.