Buyers Should Push to Cut Junk Fees
April 29, 2010
Source: Source: Investor’s Business Daily, Kathleen Doler
Now is a good time for home buyers to push for lower closing costs.
Closing costs include lending charges, local tax and transfer fees, and expenses for such things as title insurance, appraisal costs, and other third-party services. The rule of thumb used to be about 3 percent of the cost of the property.
Today, most buyers should be able to do better than that, said Guy Cecala, publisher of industry newsletter Inside Mortgage Finance. Fees that buyers shouldn't have much trouble negotiating away include wire-transfer fees, loan application-processing fees, and high FedEx charges.
"It all boils down to what a lender will work for," says Cary Pearce, production manager at Provident Bank Mortgage in Riverside, Calif.