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You Can Negotiate Your Mortgage Closing Costs. Here's how

December 18th, 2017 6:59 AM by Jackie A. Graves, President

It’s more important than ever to shop around, especially since the costs related to homebuying continue to increase. The Loan Estimate, introduced in October 2015, is intended to ease that process for borrowers who want to make the mortgage transaction more affordable.

The Loan Estimate is given to you within three business days of turning in a mortgage application. It outlines the various terms attached to the loan, including your interest rate, estimated monthly payments and the cash you need to close.

 “The (Consumer Financial Protection Bureau’s) goal with these new disclosures, including the Loan Estimate, is to help consumers better understand the mortgage process, assist with comparison shopping and prevent surprises at the closing table,” says Chris Polychron, 2015 president of the National Association of Realtors.

What to look for on Page 2

Page 2 of the Loan Estimate gives you an idea of how much it may cost to close on your mortgage, including the origination fees charged by the lender and other estimated closing costs.

The first two sections on Page 2 — sections A and B — are the most important for borrowers to understand, says Vicki Bott, past senior vice president of credit strategy for Wells Fargo Home Mortgage. Here, you’ll find the estimated lender fees, also known as “origination charges,” and costs for third-party services that the lender will secure as part of the loan transaction.

You cannot shop around for the services listed in Section B. The amounts may vary by lender. These costs include the appraisal, credit report, flood certification and tax services.

Both sections answer the question: “What costs is this specific lender I’m shopping with charging?” Bott says.

By Crissinda Ponder – To view the original article click here

Posted by Jackie A. Graves, President on December 18th, 2017 6:59 AM

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