When engaging in commercial real estate transactions, there are numerous factors…
Save on your home purchase or refinance
Real estate transactions can often appear daunting, especially for a first time home purchase. There are many steps, an onslaught of forms, disclosures, releases and contracts to sign throughout the mortgage application process and then there is the closing itself.
For many, it’s easy enough to glance through the paperwork and/or pass it off to an attorney without looking at the fine details. The impulse to simply get through the process can be strong!
Perhaps the worst kept secret with real estate transactions is that at the end of the day, many of the parties involved, from the lender to the real estate agent and any lawyers are primarily interested in one thing – that the deal closes. After all, that’s when everyone gets paid.
There is nothing wrong with that.
The bigger point is that no one is going to stick up for you and the dollars you spend more than yourself. For this reason, you owe it to yourself to pay close attention to the fees that are charged and within your control, and to stick up for yourself. People do this when shopping for cars and other large ticket items. Why not something as big as a home purchase?
In truth, most loan estimate forms are identical, and once you have one from a lender and know how to read it, you can potentially find several hundred dollars in savings.
As the loan estimate form is pretty much standardized, once you have one you can go and shop around with lenders – see if their fees are competitive compared to other area lenders. There will be a section that says, ‘Services you can shop for,’ and it quite literally spells out where you can shop for competitive pricing.
Some of the line items can include:
- Appraisal fees
- Title search/binders
- Settlement agent
Title insurance is often the most expensive of closing costs in this list, but you may be able to soften the blow by shopping around.
Some lenders can include excessive fees, sometimes with vague, non-descriptive names. It’s within your right to ask about them to better understand what these fees are and what a lender might be able to do to reduce or remove some of them.
No Closing Cost Mortgage
You may be able to close on a home purchase with no closing costs if cash is tight. Keep in mind however that the total cost of closing on your loan will be folded into the total loan amount and will increase your monthly payments. Still, if cash is tight or your money is better served doing renovations on the home, as an example, it may be the right choice for you.
Ask for Discounts
As the adage goes: The squeakiest wheel gets the most oil. In this case, it simply doesn’t hurt to ask your bank for any discounts. For instance, if you are a long-time customer of the bank you are getting your mortgage through, they may have programs or incentives that may help you reduce your closing costs or even reduce your rate for you home purchase.
A Title Insurance Service You Can Trust
You do not need to use the title insurance company that the real estate agent provides by default, and buyers are well within their rights to shop around for title service.
Principle Abstract and Settlement Services is an independent title insurance agency that works solely in the interest of our clients. For more information or to get a competitive quote for our services, contact us today.