Hidden real estate fees: Every seller�s worst enemy. As if selling
your home weren�t stressful enough, added fees seem to be poping up from
all angles. However, if you know the fees ahead of time, you�ll feel a
lot less overwhelmed. In fact, a fee structure is given to you within
three days of applying for a home loan. This structure is given in the
form of a HUD-1 statement and a Good Faith Estimate.
Two of the fees which every lender, every where, charges is the credit
check fee and the appraisal fee. Although you may not be able to
negotiate the credit report charge, you can negotiate the appraisal fee,
and this is how. The bank's appraiser may cost you an out of pocket
expense of $350 or more. By using your own appraiser, you can usually
decrease this fee by $50 to $100. The bank has a list of appraisers they
use. If your appraiser is not on their approved list, it is usually a
simple matter of showing certification and registering with the lender.
Other fees which you will be charged are the loan origination fee and
the points. The points are usually charged to buy down the interest
rate. You may opt not to do this. The loan origination fee is one you
and the lender can negotiate. It may be able to be calculated into the
loan. Some lenders will skip this fee. Just ask what the fee entails to
see if the lender may waive it.
Do not be surprised to see such things as courier fees and wire transfer
fees listed. This is the charge for getting the paperwork to the title
office or other agencies who need it. You can ask if the paperwork can
be transferred electronically. This can lower these fees if the lender
agrees.
Some of the other fees consists of the broker's fee, a processing fee,
an underwriter's fee, and an inspection fee. When you ask to have each
one of these fees waived you may find some lenders will lower the
charge, if not do away with it altogether. It just depends on the lender
as to what they may do.
You will notice there are government fees related with your loan. These
are not negotiable. The government charges them and there is no way to
get around these.
You will want to make certain the fees you are paying are not part of
what the seller has agreed to pay. You will also want to check the
figures. There are certain fees you were quoted and these may have gone
up. Question why the increase took place. This may have been an
oversight. You may also find certain fees will be waived if you ask
about each one individually.
Do not sign any documentation until you are very sure of what you are
being charged and why. You can save quite a bit of money just getting
the fees lowered or waived before the closing. You may need some of this
money for repairs or other problems relating to the new property. By
keeping a close eye on what you are being charged, you can help your
wallet in the long run. Here it really pays to do your homework before
the property closing.
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