How to Save on Closing Costs Ottumwa IA

Steps

1. Figure out how much your new home is going to cost and the amount of your loan. If you are refinancing you will need to find out how much you are going to refinance for. You should ask for a Good Faith Estimate from your lender, which you can then use to begin shopping around.
2. Begin shopping around for estimates. You will use the Good Faith Estimate when you are researching companies. Do searches in Google and other search engines for title insurance and closing costs. Get as many quotes as you can. The prices can very greatly so you need to make sure you are getting quotes for everything. Some companies will give you a limited quote that ends up being more when you close. Make sure you verify that the quote they are giving you will be what you pay at closing. If they refuse to promise that you should probably cross them off the list.
3. Keep track of your quotes. Use an excel spreadsheet to keep track of the companies you have contacted and what their quote is. It would be best to get a minimum of 5 quotes so you have a solid data set to compare.
4. Choose the company you want to use. Price is important but if you feel more comfortable with a company that was a few dollars more than another you may want to choose that company. It's up to you and that's what is important here. It's your right to choose who you use for title and closing.
5. Tell your lender and realtor (if you are using one) that you have chosen your title company. Many real estate professionals have relationships with title companies and may want you to use theirs. You do not have to. Many times these relationships are based on illegal kickbacks for business referrals and that referral money is passed on to you. You have a right to choose and anyone who tells you that you can't is hiding something.

Tips

• Educate Yourself: Learn as much as you can about the different fees related to closing in your state.
• Shop Around: Do some research and shop for a title company. This is your right and doing so can save you a significant amount of money.
• Avoid No Closing Cost Schemes: Most seem like a great way to save money but in most cases the closing costs are simply added to the loan by increases your interest rate. If you stay in a house for more than a few years it ends up costing much more than if you would have paid them at closing.
• Negotiate With Seller/Buyer: Talk to the other person in the transaction. They may be willing to pay part or all of the closing costs. If you don't ask you won't know.

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