Are Closing Costs Negotiable?
This article will talk about closing costs typically seen and paid when purchasing a home and whether you must pay all the costs or other options you may have.
Typically, on a home purchase you will incur closing costs of 3 – 6% of the mortgage amount you are borrowing. What a lender offers you can be negotiated to ask for a lender credit especially as you compare one lender’s offering to another. The most typical fees which can be negotiated with the lenders are their fees which are typically labeled as a processing fee or underwriting fee and loan origination points. Other fees coming from a third party such as an appraisal not negotiable.
The more common way of negotiating fees to through seller concessions whereby the seller as part of the total purchase price sets aside monies which can be directed to pay your closing costs. It’s a great way to reduce the amount of money needed at closing.
Remember, you can negotiate the interest rate and points a lender will offer. It is a competitive market and the consumer has the upper hand.
As always, if you need sound financial advice please speak to a qualified mortgage broker or Loan Officer at Hall Financial.