How to Avoid Paying Additional Fees at Closing1/20/2011 Many first time home buyers who aren’t familiar with the forms and fees required during the mortgage closing often find themselves stuck paying additional expenses for the home purchase. This can happen when borrowers are too stressed to consider carefully the paperwork they’re signing. In some cases, lenders try to increase fees under these conditions in order to get more money from borrowers. The best defense you have against this is preparation. Preparation If you want to avoid paying additional fees during closing, you need to know what fees you’re required to cover before you get to the closing table. Get a good faith estimate from several lenders before you decide which one to work with. A good faith estimate is a document that outlines all of the fees you’ll have to pay to close the loan. Find out which lender offers the lowest fees and the best mortgage rates, and keep track of what these fees are. This is preparation. Make sure you remain alert during closing and refer back to your good faith estimate when signing documents at closing. Don’t be afraid to ask questions if you aren’t sure about a specific fee or charge. Asking questions is the best way to stay alert and monitor the charges that you’re paying. |
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