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closing costs question

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Anonymous
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closing costs question

I have a question about closing costs (that I really could ask my dad, but he's out of the country and I can't get a hold of him). We are preparing for round 2 of home offers, and currently we have an offer on a short sale that looks like it will go through. As soon as we have lender approval, we're going to start looking for financing (we are preapproved, and our circumstances are such that this shouldn't be a big deal)...probably an FHA loan, our down payment could vary between 5-20%, depending on what's cheapest in the long run after I run the numbers. Excellent credit.

 

My question is, I know in looking around for lenders they will give me a GFE. Once we choose the lender, when is the time to negotiate closing costs? Even if I negotiate them early, to numbers that are agreeable to us, what stops a lender from screwing us at the last minute? Who can I keep tabs on to make sure I don't all of a sudden need $3000 more at closing than anticipated? I know these are negotiable, I just am struggling with the timeline I guess. Any advice would be helpful, thanks!

Message 1 of 5
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Anonymous
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Re: closing costs question

If you have a good loan officer this shouldn't be an issue, the surprise jump in closing costs that is.  Get recommendations from friends.  You could also ask when they supply the GFE which costs are subject to change so you know what could come up..  Hopefully someone can say more about the timing.  Mine were reasonable so I didn't bother asking for lower costs.
Message 2 of 5
Anonymous
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Re: closing costs question


@Anonymous wrote:

I have a question about closing costs (that I really could ask my dad, but he's out of the country and I can't get a hold of him). We are preparing for round 2 of home offers, and currently we have an offer on a short sale that looks like it will go through. As soon as we have lender approval, we're going to start looking for financing (we are preapproved, and our circumstances are such that this shouldn't be a big deal)...probably an FHA loan, our down payment could vary between 5-20%, depending on what's cheapest in the long run after I run the numbers. Excellent credit.

 

My question is, I know in looking around for lenders they will give me a GFE. Once we choose the lender, when is the time to negotiate closing costs? Even if I negotiate them early, to numbers that are agreeable to us, what stops a lender from screwing us at the last minute? Who can I keep tabs on to make sure I don't all of a sudden need $3000 more at closing than anticipated? I know these are negotiable, I just am struggling with the timeline I guess. Any advice would be helpful, thanks!


You should have put in your closing costs request when you put in your offer on the house. By not putting it in writing the seller is expecting to get the price you put in for
Message 3 of 5
Anonymous
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Re: closing costs question

The costs(prepaid) that my LO told me could change was the insurance and the interest (he did the GFE at 15 days).  We negotiated the prepaid closing costs as well as my deposit when we did the contract.
Message 4 of 5
Anonymous
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Re: closing costs question

Well, I mean I expect to pay approx. $5000-$10000 above and beyond the sales price of the house...as it's a short sale we didn't have a ton of negotiating power as far as rolling it into the loan, if that's what you are suggesting steelfan. I wish! I'm just wondering at what point can I and should I negotiate the junk fees with the lender...and it appears at contract signing according to the other posts. Hopefully the lender will approve the offer and I can start!
Message 5 of 5
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