Tips to Ease the Closing Process

You've found your dream home and have probably also heard many horror stories about the closing process. The volume of paperwork alone can seem like an extremely daunting task.

A reputable mortgage company, your trusted real estate agent and title insurance professionals can help ease the process. The following tips smooth the closing process on your home.

1. Research and understand the different loans available to you and ask questions in advance. Understand the differences between no-fee or no-point loans vs. fixed or variable rates. Be certain that you understand all the closing costs prior to the actual closing.

2. Use a reputable title insurance company that can assure that the real estate is free from any claims against the property. A title search is a necessity and is required in many states to protect the lender against any title defects that may arise. You also may want an owners policy that will protect your investment in the property if there should be a claim against the property.

3. Do all the background work before closing. Usually, buyers and sellers are required to bring items that include the latest paid water and tax bills, releases of liens or mortgages and other fee payments that may be needed at closing.

Fees You May Be Able to Negotiate

• Since most document preparation fees are computed generated, ask for a waiver.
• Processing fees can run around $150 for paperwork handling, find out about waiving this fee.
• Underwriting fees range from $150 to $300. If you loan is not a complicated one, ask for the lowest amount.
• Check to make certain you are not charged an appraisal review fee unless you had requested a formal review.
• Lenders usually have an in-house notary so ask for a waiver on notary fees.
• You may be paying a courier fee to have your paperwork taken from the lender to your settlement. Deliver it yourself to save this amount that can be around $50.
• Negotiate with the seller to split closing costs.