How to Negotiate Finance Charges on a Mortgage
Negotiation is one of the most important things which you should consider seriously before signing any contract. If you are planning to get a mortgage loan, you may have to pay a certain amount of money as financial charges to the broker. You can minimise these financial charges and can save a good amount of money if you have good negotiating skills.
Sometimes, the loan provider waives off some of the financial charges just on your request, but mostly you have to negotiate with him to minimise the amount of charges.
Instructions
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1
You have to provide your credit report to the lender in order to get the mortgage loan. Mostly, your broker collects and submits your credit report to the lender for which he charges a certain amount of money. However, if you request for your credit report yourself and send it to the lender. In this way, you can save some money. In addition, if you have to pay any debt, you should pay it right away to make your credit report satisfactory for the loan.
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2
It is extremely important for you to inquire about all the charges which your lender will take for providing you the services. After getting knowledge about all the financial charges, you will be able to make a sound base for the negotiation. The major financial charges include wire-transfer costs, loan-origination fee, clerical and administrative fees.
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3
If you have a long-term relationship with the lender, you can request him to waive off the loan origination fee. However, if you are dealing with him for the first time, it is very difficult to get a complete waiver, but you can still try. Generally, the loan origination fee is one percent of the total loan amount and is considered as the basic fee of the lender.
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4
Get the title of your property by yourself because if your lender will conduct the search for the title, he will charge a certain amount of fee for that. You can also handle other documentation issues by yourself. In this way, you will be able to get a waiver for the services of the lender regarding the documentation.
