I Can Negotiate My Closing Fees, Right?
Yes, you can negotiate your closing fees with a mortgage broker, the title company, your real estate broker, and your lender. Adjustment to these fees in most cases can be done provided you negotiate them upfront in the beginning of the buying/refinancing/application process. If you wait like most people, until you’re at the closing table your requests will fall on death ears.
Some fees are not negotiable. This goes for “hard money” mortgage fees vs “purchase money” including some title fees. Another reason for asking for removal or reduced fees at the beginning of the process.
What closing fees can you negotiate?
That depends on what is on the Good Faith Estimate (GFE), which you should receive from your lender within 72 hours of you submitting an application along with a purchase agreement. A GFE is a form that provides you with basic information about the terms of your loan which you have submitted in an application and provides to the borrower estimated costs to acquire the loan.
The newest Federal law (Todd-Frank) states a bank is to give a GFE within 3 business days from the time you submitted a real estate loan application.
On the title company side you will receive an estimated buyers closing statement, which also has all your expected costs in a line item fees schedule.
Most of the time you will not be able to negotiate title hard cost fees like your title insurance, which is based on the sale price of your new home. On the other hand you can negotiate other fees like Notary Public fees, a few title processing fees, and cost for some county recording fees.
Once you have seen the costs that you will incur with your purchase on the various forms given to you, you can then go ahead and negotiate the fees to be either removed or lowered. I have found the success rate of your requests is usually dependent on the relationship your agent has with the escrow officer, and how nice you are dealing with your title officer. As the saying goes…”You get more bees with sugar than vinegar”.
There is a word of caution here; keep your eye on the objective…which is buying a home…make sure your interest rate doesn’t change when you negotiate on fees because your lender is conceding to your demands as they still need to show a profit to stay in business. Don’t play hardball as it can come back and bite you because of your lack of experience.
Be careful. Everyone wants the best possible deal when they buy anything. Buying or selling a home is no different. Treat people with respect. Work as a team.
Selling ~ buying a home isn’t like it’s portrayed in movies
Always remember this is not a zero sum game. Most real estate transaction are Win-Win and all parties walk away with “I know I did the best I could and have a warm fuzzy feeling about my experience”.
If you would like to have the Win-Win experience during your real estate transaction and you want a real estate Broker in your corner that has helped home buyers and seller since 1976, please call Cliff Keith and Team today. Cliff Keith and Team have many sources available to their clients that makes the home buying or home selling experience one of those that saves you money, costs you little time, and a seamless transaction that will provide with wonderful stories for all you friends, family, and work associates.
What to do next?
To find out what you can negotiate during a real estate transaction there is a simple and easy 3-step process. All you need to do is:
1.) Pick up your cell phone
2.) Look up my number (650-346-7366)
3.) Call me immediately
When you call we will discuss how you can save money on your closing costs by working with an agent who has been helping homeowners, and home-buyers for over 40 years. You want that kind of experience in your corner. Do it now while you are thinking about it.
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