San Diego, California
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Copyright © 2006 by Bob Schwartz San Diego real estate broker Certified Residential Specialist
Promotions Unlimited All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. | | Real Estate --- Buyers, Don’t Be Surprised By Hidden ChargesHidden real estate fees: Every seller’s worst enemy. As if selling your home weren’t stressful enough, added fees seem to be coming from all angles. However, if you know the fees ahead of time, you’ll feel a lot less overwhelmed. In fact, a fee structure is offered to you within three days of applying for a home loan. This structure is given in the form of a HUD-1 statement and a Good Faith Estimate.
Two of the fees which every lender, every where, charges is the credit check fee and the appraisal fee. Although you may not be able to negotiate the credit report charge, you can negotiate the appraisal fee, and this is how. The bank's appraiser may cost you an out of pocket expense of $350 or more. By using your own appraiser, you can usually decrease this fee by $50 to $100. The bank has a list of appraisers they use. If your appraiser is not on their approved list, it is usually a simple matter of showing certification and registering with the lender.
Other fees which you will be charged are the loan origination fee and the points. The points are usually charged to buy down the interest rate. You may opt not to do this. The loan origination fee is one you and the lender can talk over. It may be able to be calculated into the loan. Some lenders will skip this fee. Just ask what the fee entails to see if the lender may waive it.
Do not be surprised to see such things as courier fees and wire transfer fees listed. This is the charge for getting the paperwork to the title office or other agencies who need it. You can ask if the paperwork can be handed over electronically. This can lower these fees if the lender agrees.
Some of the other fees include the broker's fee, a processing fee, an underwriter's fee, and an inspection fee. When you ask to have each one of these fees waived you may find some lenders will lower the charge, if not do away with it altogether. It just depends on the lender as to what they may do.
You will notice there are government fees related with your loan. These are not negotiable. The government charges them and there is no way to get around these.
You will want to make sure the fees you are paying are not part of what the seller has agreed to pay. You will also want to check the figures. There are certain fees you were quoted and these may have gone up. Question why the increase took place. This may have been an oversight. You may also find certain fees will be waived if you ask about each one individually.
Do not sign any documentation until you are very sure of what you are being charged and why. You can save quite a bit of money just getting the fees reduced or waived before the closing. You may need some of this money for repairs or other issues relating to the new property. By keeping a close eye on what you are being charged, you can help your wallet in the long run. Here it really pays to do your homework before the property closing. 
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