Jeff Adams Real Estate Tips Five Ways to lower your real estate Closing Costs

Jeff Adams Real Estate Tips Five Ways to lower your real estate Closing Costs Real Estate Mortgage closing costs have raised 6 percent over the past year, according to a recent showing Bankrate report averaging $2,539 on a $200,000 loan. The news is worse for you if you live in Texas, where closing costs are the highest rates ($3,046). Nevada closing costs are the lowest rates ($2,265). 

Multiple quotes:

Get estimates from at least three lenders, da Costa says. You are looking for the totality package for evaluation interest rate plus closing costs. You will generally be able to get those numbers by providing a few financial basics over the phone. 

Compare costs:

This is harder than it sounds, since lenders call similar fees by different names, lump certain things mutually that other lenders list separately, and include and exclude certain third-party costs, such as homeowners insurance. Your best bet is to ask for the Good Faith Estimate, which lists all individual fees. It’s the easiest way to compare apples to apples, da Costa says. 

Ask about fees:

Have the lender walk you through every charge and discuss what it includes. Some third party charges, such as appraisal and credit report fees, are pretty set in stone. Other costs, such as title insurance, legal fees, and rate lock fees are more flexible. If the lender has not been sending papers around for name via delivery service, you can have this one nixed. 

Watch for trash fees:

Those are fees a lender will charge that are negotiable, that they can take out, says Ziggy Zicarelli, a real estate and president-elect of the California Association of Realtors. These might include things like application fees, underwriting fees, and loan meting out fees, among others. If they seem vague, they almost certainly are. Sometimes when you push at the more formless charges, they can be lowered or eliminate. 

Ask for the discount and offering:

Go ahead; pit those companies against all other. If one lender is offering a deal, ask other lenders if they can match it. You may be enjoyably surprised when a competitive market results in a smaller bottom line. 

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