Why You Should Negotiate Your Closing Costs

Closing Costs Are Negotiable

Closing Costs…the shocking part of your real estate transaction. As a first-time home buyer or seller, you may see closing costs as a substantial, sometimes unexpected expense. But do they have to be? Nope! In fact, if you didn’t know that you could negotiate your closing costs, now you do and here’s why.

1. Prevent Surprises.

According to Chris Polychron, 2015 president of the National Association of Realtors, “The (Consumer Financial Protection Bureau’s) goal with 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.”

Don’t forget to look at Page 2. Page 2 (Sections A, B, and C) of the Loan Estimate are the most important for you to understand as a borrower and will give you an idea of how much it may cost to close on your property. This page will include origination fees (also known as the estimated lender fees) and costs for third-party services that the lender can secure on your behalf. You should negotiate these and choose your own service providers to lower costs! However, Section B of Page 2 of your Loan Estimate is not negotiable – things like the appraisal, credit report, flood certification, and tax services.

Section C is the section that includes the closing costs that you have the most control over. Section C includes title insurance, and if you live in the State of Florida, you should shop around for an honest title insurance agency, like TitleZoom, that will automatically give you the Butler Rebate.

Prevent closing costs sticker shock by doing your research on everything that may be included in closing costs and what you can shop around for, then shop!

2.Save money!

This is the number one reason to negotiate closing costs. Using step one above, you can figure out which costs you can negotiate and shop around for to get the best deals on each, so your overall real estate closing costs are lower. Your realtor, if you have one, can help you do this, but you should ultimately do some footwork and choose the best deal you can find, not just a recommended company. Don’t pay for items you don’t need to or pay hundreds to thousands of dollars more for the negotiable items included in your closing costs.

3.Save time.

Negotiating your closing costs can save you a whole lot of time in the long-run. Sure, you have to spend some time shopping around, but if you shop around right, you can find real estate closing and title insurance companies that work faster and smarter for you. Here at TitleZoom, that is our main mission. The right title insurance company can help you save money through certain state insurance rebates, as well as save you time on paperwork on closing day via digital platforms.

Final note: Make your real estate transaction one that is less of a headache, sticker shock, and burns a hole in your pocket. There are many reasons why you should negotiate your closing costs, but saving time and money are home runs when it comes to real estate transactions. Let TitleZoom give you the best deal on title insurance and other closing related costs, with digital processing that saves you time and money! Contact us today for more information.

Arlene CeballosWhy You Should Negotiate Your Closing Costs

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