Closing Costs ARE Negotiable!

Many people do not realize that closing costs are negotiable.

“There is a lot of room for negotiation in the costs of closing. Consumers should examine every charge and not hesitate to challenge them and try to bring them down,” says Barry Zigas director of housing policy at the Consumer Federation of America.  Closing costs add up fast when buying or refinancing, they can run anywhere from 3 to 6 percent of the price of the property.   Many of the fees associated with closing are negotiable and consumers should review line-by-line estimates and challenge them.

You should ask the lender which fees are negotiable and which are fixed.   Ask questions like who is getting paid this fee, and why am I being asked to pay it?  This type of questioning can start the conversation, experts say.  “It is not a time to be polite” says Kathleen Day, a spokeswoman for the Center for Responsible Lending.  The lender  MUST provide you a Good-Faith-Estimate after three days of receiving a loan application.  You should use those estimates (at least three) to shop for the best deal.  Why shouldn’t you shop for the best loan?  You shop for the best house!