In: Root » Legal and finance » Loans and mortgages
1. Before applying for a loan, ask if the application fee is refundable should you be turned down. Ask for junk fees to be waived (e.g., underwriting or commitment fees or document-processing charges). And try to negotiate on the other closing costs, such as legal fees, the appraisal, and points. 2. Title insurance companies pay out on an infinitesimal percentage of premiums. But you'll still be required to buy title insurance to protect your lenderin case the seller wasn't the only, or the "real," owner. If the seller has owned the property for just a few years, see if you can get a discounted "reissue rate" from the seller's title insurer. Similarly, see if the lender will accept an updated version of the previous owner's property survey. This will save 50% or more, compared to the cost of a new one. 3. Question escrow. Although it's standard bank policy, you don't have to acquiesce without a murmur. Try to negotiate a clear contractual out that will eventually let you pay your own taxes and insurance. Meanwhile, periodically ask the lender for an escrow analysis. If there's more than a small excess (for contingencies such as tax increases), ask the lender for an explanation. 4. Skip mortgage life insurance if you have a choice. There are lots of cheaper term policies that will pay the same or moreand won't require you to list the bank as your beneficiary. Let your heirs decide when to pay off the mortgage. 5. Be in really good hands. The last thing you want is for your house to burn down, leaving your family out in the cold. Lenders, however, are much more concerned about their collateral, which you'll be obliged to insure. The right policy and insurer can save you money now, and grief later, should a disaster strike. 6. Talk with your tax preparer before you set a date for the closing. It might save you money. 7. Give a last look. Arrange to inspect the house one last time as close to closing as possible. (An hour before would be almost perfect.) If there's a problem, be it a broken window, frozen pipes, or a missing dining room fixture, you might be able to get reimbursed by the seller at the closing.
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