How to Spot Inflated Home Closing Costs

Home closing costs make up a fairly large amount of money in the sale process. Whether you are buying or selling a house, you will need to be aware of what to expect in the way of closing costs. Sometimes, closing costs can be inflated to make a little extra profit for those involved. If you are involved in the process, you need to be able to spot inflated closing costs before you close the deal. Here are a few ways to spot inflated home closing costs and how to avoid them. 

Get Estimates Beforehand

Before the deal goes through, you need to call around and get some estimates on what closing costs should cost. Call a real estate agent in your area and they should be able to give you an idea of what to expect. As far as the lender closing costs, you should get several estimates from different lenders. According to the Truth in Lending Act, they have to give you an estimate on closing costs within three days of applying for a loan. Use these estimates to your advantage.

Sometimes lenders will put points into the loan in order to buy down the rate. If you did not discuss this upfront, you need to talk to them about it before you sign the loan.