How To Negotiate Your Closing Costs
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- Опубликовано: 8 июл 2024
- Closing costs exist on every purchase with a home loan.
The best way to navigate what fees and costs are being charged is to talk with your Mortgage Advisor about why the fees are there and who is charging them.
Let your Mortgage Advisor know if the total cash-out-of-pocket is different than you expected and what solutions exist if they need to be lower.
Read the article here: kyleseagraves.com/negotiate-c...
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0:00 How To Negotiate Your Closing Costs
1:02 Loan estimate
1:20 Walkthrough
1:31 Origination charges
1:40 Underwriting fee
2:27 Items in a loan estimate
2:58 Recording fees
3:07 Homeowner's insurance
3:22 Escrow account
4:34 Can you negotiate closing costs?
5:04 Talk with your lender
-- Legal --
Kyle Seagraves
NMLS# 1701021
Motto Mortgage Alliance
8900 N. Dixie Dr.
Dayton, OH 45414
Equal Housing Opportunity
Excellent help!
Thanks for watching!!
Can you do a video about rolling your closing cost into your mortgage ? Explaining why or why not this is allowed
Super helpful, thank you sir!
Glad to help!
Great video and explanation. thanks
Thanks so much!
Thanks😎
Marie Thanks for watching!
Thank you again
Always welcome
Thank you for this. I will try to lower my $7.8k closing costs down by getting rid of escrows and finding a title company.
You're welcome! Great!!
Super helpful. Thank you.
You're very welcome! Keep up the awesome work on your channel!
@@WinTheHouseYouLove 👍👍☺️
Very professionally done video thank you sir!!
So nice of you! Thanks for watching. :)
@@WinTheHouseYouLove you're very welcome
What about indemnity protection on open violations hazards ? Do banks absorb this in their insurance or buyer pays this insurance ?
If you waive your escrow account can you add it next year?
most mortgage brokers aren't interested in providing the loan estimate upfront because of the choices that the buyers have in today's market. what to do with it?
Hi Daniel, first time home buyers here. Do you provide a service where you go through the loan document and help us negotiate ?
Who is Daniel?
1st time home buyers here! We are under contract on a house and had to go in 10k over asking and with us paying for closing costs. (Several other bidders). Not on just this house, utah housing market is like this on all the homes. The house is well within our budget we have 2 incomes but looked for mortgage payments for just 1 income. We are completely debt free and have our 4 month Emergency savings and our down payment. We even have enough saved to pay for closing costs. Right Were on the appraisal part of the contract. My question is: Is there any wiggle room with negotiating the seller or lender to reduce our closing costs or is it too late? And because we have the extra money saved to pay for closing costs would it even make sense to ask them to lower the amount because I heard the amount doesn't just get waived or go away it is put back into to your loan amount is the correct? Thank you and we really appreciate all your videos
Congrats on being under contract! You can always try to renegotiate with the seller, but it might be difficult since you have an executed contract at this point.
As far as the lender closing costs, talk to your loan originator about what fees can decrease. You won't have to bring more than the costs to the closing table.
Wow, pre-pandemic Kyle. Kyle, is seller's credits and/or negotiating some of the costs a thing given the current hot housing market? Sorry if I missed that in a newer video.
Haha.. Thanks for digging those video. :)
Can you wrap closing costs into your VA loan?
You can't, you'll need to request seller credits to be able to get closing costs covered - Kyle Seagraves winthehouseyoulove.com
I have had this happen during a few of my transactions with clients using a VA loan. Ask about a lender’s credit from your lender in exchange for a higher interest rate.
If seller is paying closing costs do they write a check directly to closing
Nope, the title company will subtract it from your net proceeds :)
I didn't even know you can negotiate closing costs.
For sure! Insurance and title are the biggest ones that can change.
Insurance is easy, but title isn’t so much unless you’re familar with good companies. Bad title companies can be a real nightmare.
@@WinTheHouseYouLove Ive always just used the ones my lender recommended have i just been lucky? lol haven't had an issue yet
@@binchen-realestatesimplifi2143 Your lender probably has a good recommendation if they've worked with those companies in the past
i have an FHA loan and my finance company gave me a "worst case scenario quote" in something they call a Total Cost Analysis, yet i get my loan disclosure and my closing cost is almost 2 grand higher than my so called "Worst case scenario" which would you think is more trustworthy?
The disclosure is the most accurate
Great content as always Kyle! I'm currently trying to decide which lender to go with based on the loan estimate the gave me. I sent you an email with my question. Please help 🙂
Cool, I see it and will reply early next week :)
@@WinTheHouseYouLove thanks man! 🙂
Is a commitment fee a thing? would it be possible to negotiate this fess
With some lenders it is. You can shop multiple lenders
Is it possible to waive the escrow if it's for a fha203k ?
You can't waive escrows on FHA
@@WinTheHouseYouLove Thank you I was making sure I didn't over looked something. I really enjoy your channel..solid information
@@robertcornelisse8664 Thank you, sir!
How does having a high credit score helps me negotiate these closing cost?
It will probably help you shop for a good rate on a mortgage and insurance
@@WinTheHouseYouLove if you have a good credit score (830+) can you dictate the lender what rate you are willing to work with (inside 0.25%)?
The title search for the buyer is being done by the seller's lawfirn where she works as a paralegal. In that case, is it too crazy to ask the seller to all buyers closing cost?
to pay I ment to say.
Not crazy :) You can't tell the seller to pay all the closing costs. You can only negotiate a percentage of the sales price towards closing costs e.g. 3% on a $200,000 house would be $6,000 in closing cost credit from the seller.
I'm looking to do a cash-out refinance but my lender will only give me 60% of my equity because of my debt to income ratio can I negotiate this to a 75% I have good credit
Ask your lender what you can do to help lower your DTI
@@WinTheHouseYouLove thank you for the advice 👍
Would someone that asks for closing costs of 7800 and I counter it to 3500.. does that sound reasonable?
It really depends on your local market
Shoot id be happy with that lol
What really is an escrow, is that an additional $1,000 on top of the mortgage
First time buy here. I am Going for FHA loan. I have a high (750 credit score) Should I negotiate and make the lender pay the closing costs by raising the rate?
Hi! It's up to you, if you think there's a big change that your lender accept that offer... why not! Best of luck!
Curious why an fha loan? You'll likely save money with conventional
Can I ask my realtor for closing costs help? He written up a contract asking for 3% from the seller? Should I still ask him for closing costs help ?
Like from the Realtor's own commission? That would be unusual. A Realtor willing to give up their commission is not a Realtor I would want to work with. If they can't negotiate their own pay, they definitely won't be able to negotiate a good deal for me.
Just use costco mortgage
Costco seems to do everything hahah
When does the estimate become carved in stone?
To append my statement, I'm in the process of closing and already signed the disclosure document which had some numbers reflecting what we think we might need to borrow since we are renovating (home style loan). Initially it was 208k but before signing I ask them to update the total to 187 since I no longer anticipate the 20k in renovation. Lender told me those can be updated later and advise to sign off on whatever they already had prepared since we are working against time. The appraisal is ordered and schedule. My guess is once the appraisal return and if all goes well then we'll revisit those numbers and optional items such as buying into pointe etc. I could be dead wrong but home I'm not since there is a 4,700 charge for points on the document which I have no intention in buying!
Great question! A Loan Estimate is always going to be an estimate until a title company creates the final document called the Closing Disclosure.
As far as your situation: I agree with your lender, re-creating documents can cause a delay from 1-3 days in a loan. Anyway, you only sign receipt of documents at this point in the loan. You never sign obligation to a loan until you're at the closing table.
It sounds like there is already $4,700 in points on the loan which sounds very high. For renovation loans, you'll want to keep your fees low. I would ask them to take off as many points as possible. This will increase your rate, but that won't matter because you will refinance out of the rehab loan into a cheaper loan in 6 - 12 mos.
@@WinTheHouseYouLove we share similar sentiment. I have no intention of buying into points lol. Looking to refinance as soon as I am eligible. Since I have you here I guess I will toss the question out there. Can this type of loan (interest rate of 5.25 possible more since I'll be declining the points) be refinance to a "regular" conventional loan which has rates today low rates in the "3's"? Is your refinance option limited to the type of loan you initially took out?
Thanks a lot and I am 💯 somebody will find this useful in the future!
@@illmatic33 Yeah the rate doesn't matter at all right now since you're mainly using this rehab loan as a "bridge" to a longer-term loan.
You can absolutely refinance into any kind of loan. It won't matter what the initial loan was. Ideally, your rehab and appreciation will increase the value enough so if you refi into a conventional loan, you can drop PMI as quickly as possible.
@@WinTheHouseYouLove on the good note the PMI is only $33! Lol. I had to pay it for my home at $130 for two years and it sucked! Got so used to it that I continued to pay it on the principle after it got cancelled. 🙂
Do you have a mortgage broker? I'd applied for a re-fi about a month and a half and no light at the end of the tunnel. This is the time to re-fi for my six rental properties and the mortgage broker I used, found him here on RUclips, has the lowest rates and lowest fees, but I am not sure if I am able to close. Please send me a private e-mail if you would like to reply back, thanks!
I'm not sure what your email is, but you can email me at kyleseagraves@hey.com
Why does the buyer have to pay the appraisal fee, the burden should be on the bank.. they’re the ones giving the loan and want to make sure the property is worth it ... 😅
You could also argue the reverse. There's not much leverage when you're asking someone for hundreds of thousands of dollars.
@@WinTheHouseYouLove true true.. I guess the leverage would be if you prove your credit worthiness and show skin in the game with 20% down payment.. compared to another borrower. Additionally, the bank isn’t providing the loan at 0% interest so they’re making money on the loan. If there are no borrowers, the bank would eventually go out of business.
A few lenders will offer to pay for the appraisal. However, it's important to keep in mind that mortgage don't work like they look on the surface. The bank makes a very small amount on each loan. Loans are sold and packaged into mortgage-backed securities. Most pay 2.5%. So even at a 3% rate the bank is only making a .5% profit. The investor of the security is the one who takes on the risk of default and earns the majority of the interest profits. And who holds the securities? Most of us in our retirement accounts.
So, all in all, sure banks could take on more cost, but they'll just raise the rate to cover it because investor demand won't accept higher costs just to make buyers slightly more happy. Banks don't have the crazy high margins that people assume.
@@WinTheHouseYouLove Thanks for taking the time to provide additional information. It helped me understand a bit from the bank’s point of view.
I’m going through the home buying process for the first time and the closing costs/process are a bit overwhelming. However, I’m getting to accept it slowly. I’m trying to figure out if this house buying process could be done easier so the buyer knows exactly or close estimate of the costs upfront. For example, if I’m on Redfin and looking at properties, I should be able to see the listing price of the house and a section that shows estimated closing costs based on the price of the property. I’m over simplifying it, but I think it should be that simple.
Nope,, he's just another stack your cost on top.
This is not a coherent sentence.
@@WinTheHouseYouLove how bout,
Roll it up?
Kind of vague tbh. Not a huge help but your video kind of makes us ask more questions and if the lender is hungry he can definitely screw you out of thousands.
What questions do you have and I'll answer them :)