Negotiation Closing Costs on a New Home

Buying a new home, the biggest financial burden that you’ll have to overcome would be the down payment followed by the hefty mortgage that’s going to weigh you down over the next 15 to 30 years. But, to add more fuel to the fire, closing costs are another figure that’s been plaguing every homeowner.

Fees

Closing fees add up to a resounding large amount when all is said and done. These fees also come in different sizes and from different areas. There’s the state and federal taxes that every home buyer has to pay as well as the lender charge. Additionally, there are appraisal fees, credit checks, inspection fees, etc. Depending on the mortgage provider that the homeowner chose, this total cost is going to vary – typically not by a drastic amount.

Negotiations

Negotiating your closing costs can lead to a lower overall total, but, not every aspect can be brought down. You can however, shop around in search of a reduction of the total amount. For example, the fees that are implemented by the mortgage provider can be bundled rather than a separate allocated fee, therefore giving you a slight discount. While mortgage companies will give you the short end of the stick and try to sign you up for the advertised deal that they propose, it’s important that you take the time to negotiate with them to attempt to lower any fees. Also, try not to haggle with every provider as it most likely won’t work out the way you originally planned it to. Look into the costs that are associated and work with your mortgage lender for alternate options on a mutually beneficial deal.

Bio: Kuba Jewgieniew is the founder of Realty ONE Group, a real estate brokerage firm that provides ethical, professional, and results-driven services to every property owner and prospective estate buyer.