WSVN — Closing on a dream home requires opening your wallet to pay fees. In tonight’s Dollars and Sense, Lynn Martinez finds out how you can cut some of those closing costs.
You found the place you want to put down roots but unexpected fees could uproot those dreams quickly.
Mindy Jennings: “Title insurance and then there’s an examination fee and then there was a fee upon fee. Shipping fees, everything on there we didn’t know what half of them were for.”
Licensed Title Agents like Duane Baum say people can be confused by the true costs of closing a home.
Duane Baum: “I think many, if not most, of the consumers just really don’t have any idea what the closing costs are. They under estimate how much the closing costs are going to be.”
You can’t get rid of the fees entirely but there are ways to save money. Duane suggests getting a licensed realtor you trust.
Duane Baum: “They know the costs, they know the timetables that are involved.”
If you’re getting a mortgage on the home, you’ll get what’s called a Good Faith Estimate. This form is given to the buyer to show what the potential fees will be.
Duane Baum: “It tries to give you a good faith estimate of what all the costs and fees are going to be for doing the transaction.”
This is your key to shop around with other lenders, to find the best deal.
Duane Baum: “Now, taking this document and then … actually you want to get two, three, four of them.”
Remember, if there are things in the home that need to be changed, that will cost you money. Plan for those costs and negotiate.
Duane Baum: “You’re coming in, you want to put your personality on it and that’s going to cost.”
Another key to saving; make sure your timing is right.
Duane Baum: “If you’re able to close towards the end of the month, you’re able to save on what’s called the prepaid interest charge or per diem interests.”
Mindy was caught off guard by the cost of closing.
Mindy Jennings: “Nobody tells you up front, ‘By the way, you need to know that you’re going to pay these.'”
But thanks to Duane’s help, she’s ready for her next purchase.
Duane Baum: “It’s always important to save money because you never know what’s going to come down the road.”
For More Information:
Law Office of Duane E. Baum, P.A.
1200 South Pine Island Road
Plantation, FL 33324