Are mortgage closing costs negotiable?

Can Closing costs be negotiated?

woman with distraught look staring at huge stack of documents

First and foremost, it is imperative to remember that you ultimately choose your mortgage lender, which means, there are choices – and the lender has the primary impact on the charges tacked on to your closing costs. This fact is advantageous to the buyer and should be used as a tool to compare estimated closing costs that lenders detail in the Loan Estimate. The lender fees tend to be fixed, however, and the best way to negotiate is to inquire which charges (for example, an application fee) can be waived.

Also listed on the Loan Estimate are fees such as homeowner insurance and home inspections. The borrower can submit a request to the lender to provide them with a list of approved companies or inquire if any one reasonably-priced company meets their requirements to utilize their services instead. These methods may take up time, but it can save the borrower money in the long run.

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