Real Estate --- Buyers, Donít Be Surprised By Hidden Charges
Hidden real estate fees: Every sellerís worst enemy. As if selling your home werenít stressful enough, added fees seem to be appearing from all angles. However, if you know the fees ahead of time, youíll 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 avoid 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 discuss. It may be able to be calculated into the loan. Some lenders will skip this fee. Just ask what the fee consists of to see if the lender may waive it.
Do not be stunned 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 reduce 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 associated 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 definate 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 decreased 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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