Cost-busting Ways to Lower Your Closing Costs

By Kelly Richardson Columnist

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If you're planning on purchasing a new home or refinancing your current mortgage, you're going to have to deal with a litany of closing costs that could cost you thousands. But follow these simple tips and you could be putting that money back into your pocket as opposed to lining those of your lender.

Closing costs are a true mystery of the world of real estate. If you plan on acquiring a new home loan or are interested in refinancing your current mortgage, closing costs are what separate you from your goal. But dont rely on the advertisements and sweet talk of various mortgage lenders to help you save on your closing costs. Do your homework and find out exactly what will be included in these fees. Here is some sensible advice from top real estate professionals on how you can reduce the shock of closing costs.

To Cut Closing Costs

  • » Repeat Business. Working with a mortgage lender that you're already connected to might streamline a great deal of the administration and maintenance costs that it takes to set up with a new lender.
  • » Make Them Itemized. Before signing for that new home loan, ask your mortgage lender for an itemized list of your closing costs and find out which of these you're required to pay.
  • » Cut the Options. Some of your closing costs represent optional services that you can just as easily complete on your own. If you can do it, you can save several hundred dollars that you would otherwise pay.
  • » Watch Outside Companies. Some mortgage lenders work with outside companies for some closing activities. The fees of this outside company will show up in your closing costs as well. Find out which ones.
  • » Know Your Locale. Some mortgage lenders will pad closing costs for finding out the tax information of your particular county. This is something that you can do for yourself that will lessen your final bill.
The simple fact is that closing costs are not set in stone. They are revolving and varying components of the mortgage process that can be negotiated. In fact, take the apparent disadvantage of paying closing costs, turn them around, and use them to compare the various mortgage lenders that youre considering for your next home loan.

About the Author
Kelly Richardson covers the real estate scene in major cities across the country. His articles appear in educational journals, periodicals, and e-zines.

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