3 Avoidable Closing Costs

Ask your lender for a good faith estimate of closing costs before starting the process of securing a loan. You do not want to be surprised with fees up to 8% of your mortgage loan unexpectedly. Once you get the estimate, see where you can provide your own services in order to reduce costs.

Credit Reports

If you subscribe to a credit report service, offer to supply your own three bureau report, sealed, to the lender. Since you already pay the monthly fee to be a member, you can save $50 to $80 in fees for the report.

Inspection Fees

You cannot fully avoid inspection fees, and you wouldn't want to. Your inspection keeps you safe in your new home. However, you may have a friend or colleague who can provide the service cheaper than the lender's contractor. If you know an inspector, ask for a quote and compare this to the lender's fee.

Recording Fees

The deed to your home must be recorded at the local registrar's office. You can actually do this yourself if you are willing to give up some time waiting in line at the local office. Ask your lender to handle this portion of the process, and then learn about registering the home in your neighborhood.

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