Next, Be On The Lookout For Junk Fees

Category: Finance.

Closing costs can surprise many homeowners if they aren t prepared for them and can seriously deplete savings at a time when most people need money the most. However, by taking a few simple steps you can keep your closing costs low and know when to tell your lender that enough is enough!

It seems that lenders are constantly finding new and creative ways to tack on a few dollars here, and a few dollars there to the tune of thousands. First, you should always be a savvy consumer when it comes to title work. Of course, the mortgage company they want you to use always turns out to be one of the more expensive ones( because they are getting kickback fees) . You have the right to select any title company you want and not the one that the mortgage company wants to force upon you. Shop around for a title work company and you can often save 30% right off the bat, and if you are willing to really work at it, save upwards of 50% . Next, be on the lookout for junk fees.

It s not chump change either- a title company can easily charge$ 1, 200 for basic title services. Lenders love to pile on the document preparation fees, interest locking fees and anything else they can think of. Make sure that you ask your lender for a full disclosure of all the fees and then ask them about any that seem out of line. Often times they throw these fees onto mortgages that have no points attached to them. If you aren t happy with what they quote you, tell them you are looking around at other lenders. If you aren t going to be in the house for more than a few years, ask the seller to pay the closing costs.

The last thing a lender wants to do is lose 30 years worth of interest because of a$ 200 junk fee! Sure, you ll end up paying a higher interest rate, but if you plan on moving in a few years then the cost of the interest won t match the closing costs you would have to pay up front. Watch out for lenders who try to sell you add- on products with your mortgage. Plus, you pay the extra interest off is small chunks each month rather than being out a lot of money up front. They love to try and get you to buy credit insurance( a total waste of money) and some lenders even try and sell you services such as" plumbing protection" or" whole house appliance protection" . Remember, you have the power to say no thanks at any time before you sign on the dotted line. Just say no!

If you don t like the figures your lender is talking about for closing costs, shop around- in fact, you should around and get several mortgage offers before you even consider one. After all, it s your money- don t let a greedy lender try to squeeze another$ 1000 out of you when you have enough stress taking place buying a home in the first place! Don t be afraid to get up and walk away from the table.

Read more...

Normally, Unfinished Starter Homes Leave The Upstairs Area Unfinished - Finance Articles:

Unfinished homes present a great way to save a lot of money and get yourself a new home in the process.

There Is No Set Schedule For Credit Card Fees - Jeanie Didomenico's Finance blog:

Credit card companies are in the business of making money. They earn their money through two principle methods.

The Sooner You Report Identity Theft, The Better - Corinne Aguayo about Finance:

Signs of identity theft can come in different forms, so be aware and report identity theft as soon as you can. All tips can lead to financial ruin and tarnishing your name because you were a victim of identity theft.