1. New Mortgage Disclosure Form
There’s a new form going into effect in the next few months that’s intended to be easier to understand as well as to make sure that every cost related to taking out a new mortgage or buying a home is clearly laid out.
The new form for closing services is called the “Loan Estimate” and separates your closing cost fees into three simple categories: Origination Charges, Services You Cannot Shop For, and Services You Can Shop For, which will allow you to comparison shop for certain mortgage-related services.
2. Shop Around
By understanding your closing costs (made significantly easier and more transparent thanks to the new mortgage form rolling out this year), you can comparison shop certain services such as title insurance and settlement fees and possibly save yourself thousands of dollars.
3. Negotiate with the seller
Sometimes a seller gets stuck on the selling price for their home — and they won’t take a penny less. If it’s still more than you want to pay, it’s possible that the seller may be open to paying the closing costs on the transaction. Psychologically, they feel they are still getting the price they set for their home, while the amount you will actually be spending will be less. Remember the cost of your new home is more than just the sticker price, it’s that amount plus all the associated fees and charges.
For more tips on getting the best deal on your mortgage, check out these sources:
- Housing prices negotiations stalled? Why closing costs are your best bargaining chip (CS Monitor)
- Mortgage Closing Costs You Can Negotiate Lower (Lender 411)
- Five Tips to Keep Your Mortgage Refinancing Closing Costs Low (Total Mortgage)
No comments:
Post a Comment