Working With Mortgage Closing Costs

Real Estate Broker/Owner with
 For those who can afford to experience a short-term monetary loss, there's arguably never been a better time to purchase South Florida homes and invest in real estate.  Miami Beach condo and home prices are unusually low and mortgage rates are affordable, allowing those with impeccable credit to obtain agreeable financing.

While low home mortgage rates are indeed attractive for anyone entertaining the thought of home buying, buyers should be aware of one important factor that comes into play when applying for a mortgage: the closing costs.

All closing costs are not the same and it's not unusual for a mortgage lender to tack on extra fees towards the final phases.  These fees can be anything from application and processing fees to even charging for credit checks.  In some cases these fees can add almost $1500 to the transaction.  While government efforts are being made to make mortgages easier, they remain on the drawing board.  What can be done in the meantime?

Establishing a healthy professional relationship with an existing lender can often lead to a simpler process in terms of refinancing or obtaining a new mortgage.  Common fees such as those charged for the application and appraisal can be waived.  In addition, many lenders will give much better deals if a homeowner consults with them first when looking to purchase a new home.

Mortgage lenders are required to give borrowers an estimate of their loan before anything else and these estimates are often a good glimpse of what fees will be included.  Assuming the person looking to buy that Miami Beach home in question has good credit, they can often contest and remove a few of the fees.  Always remember that a lower mortgage rate should remain the most important item to be aware of regardless of the closing costs.  The long term savings usually range in the thousands.

Comments (2)

Miami Beach Condos and Homes - Miami Beach, FL

If there was one thing we wanted this article to emphasize it was that people involved in purchasing real estate should build healthy relationships with their lenders and sellers so they can cooperate and keep the payment process as transparent as possible.  

May 07, 2008 08:45 AM
Sarah Eubanks
Hill Valley Financial Services - Oregon City, OR
Preferred Oregon Loan Consultant & Notary Public

I would also add that there is wisdom in obtaining a referral from a friend or family member.  They must have had a good experience if they are willing to refer somone. 

Oct 09, 2008 08:36 AM