5 Tips to Reduce Closing Costs According to Middletown, NJ Realtors

Suggestions from Realtors in Middletown, NJ on how to save money the smart way when closing on your mortgage

Refinancing makes sense when considering the condition of the real estate market and today's historically low rates. But refinancing typically costs approximately 2% to 3% of your total loan amount, including fees for the loan origination, appraisal, title insurance and more. Sometimes closing costs can defeat the purpose of refinancing, so it is important to keep them as low as possible.

Below are five tips from Middletown, NJ Realtors to help you do just that:

Ask Questions to your Middletown, NJ Realtor

Middletown, NJ Realtors advise clients to never be afraid to ask any question, even if you think it is insignificant. The only dumb question is one that is not asked. If something looks uncertain on your good-faith estimate or you do not recognize a particular fee, research the situation. It is a lot easier to sort out such issues prior to sitting down signing a giant stack of paperwork.

Compare Offers advise Middletown, NJ Realtors

By law, lenders must provide you with a good-faith estimate of their closing costs, say Middletown, NJ Realtors. A good idea would be to compare estimates from at least 3 lenders and use that information to negotiate a lower fee. To help narrow your options, compare the interest rate offered on a loan to its annual percentage rate, or APR. The APR calculates how much total interest you will pay each year and includes any hidden fees or other costs. This is a better representation of the true costs of a loan.

Reuse Lenders

Using the same lender you worked with on your first mortgage can save significantly on paperwork costs. In many cases, documents covering items such as title insurance can be re-filed as opposed to being created from the beginning, saving up to 70% on the filing fee.

Be on the Lookout for Lowballs

When comparing closing-cost estimates, be cautious of numbers that appear suspiciously low, say Middletown, NJ Realtors. These may include unrealistically small assumptions about certain costs. In particular, look closely at Line 901, the first month's interest that you pay in advance. Many originators will account for only a couple days of interest, so if you close at the beginning of the month, that number can significantly increase.

Do Not Be Afraid to Walk Away

When it comes time to close your loan, the amount of closing costs may differ from the original estimate. In the event that your broker or lender cannot explain this change in fees, do not be afraid to walk away from the deal. Even if you do sign, you have 3 days to think it over and reconsider before the loan becomes binding, according to Realtors in Middletown, NJ.

 

The Real Estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a Real Estate professional who will provide valuable information and trustworthy advice. For more information on NJ Real Estate or foreclosures, call us today or click here to be connected with one of our top Real Estate specialists.