To conclude on a mortgage, it is everywhere the lender and real estate agents to cut costs to save money for buyers?

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I’m trying to buy a house and the lender has set for me to ask around $ 3800, was from the beginning when we said that we could obtain 100% financing. I saved some money and I have to go against that, but I also had to leave the pocket and other species for evaluation by a contact on the house, termite inspection, etc. So far I’ve invested a lot here. My question is whether there is somewhere in bank charges and brokerage, costs can be reduced so that they can help us. I mean, if we lose this loan, it will be like $ 1500 and I hate that I do all the time and money invested to date, and that’s all that keeps me from being able to purchase. I got a good price and everything looks good on the loan, it’s just the cost that come with pocket drive? Help anyone!

  1. Reply
    February 17, 2011 at 9:02 pm

    The lender and Realtor are getting paid so maybe they could give you part of their pay. But when I buy a car or a washer & dryer I don’t expect the sales person to give me part of their earnings so don’t hold your breath.

    The lender could raise your interest rate slightly and they would be able to resell it for that $ 1500. So that could be an answer.

  2. Reply
    Leo F
    February 17, 2011 at 10:01 pm

    Realtor and the mtg company is being paid a percent of the sale. Ask if they will lower the fee a little.

  3. Reply
    Bob D
    February 17, 2011 at 10:15 pm

    Yes the lender and realtor and loan officer could take less money. You can ask them. Just remember that less money is thier income…..and thier out of pocket expenses like, mortgage, food bills….child care.

  4. Reply
    Traverse City Agent
    February 17, 2011 at 11:02 pm

    First, you need to find out why if you were going for 100% financing you have any out of pocket costs. Talk with the lender.

    If, for example the appraisal for the house is less than your purchase price, then you should look at your offer and see if there is a way to ask the seller if they will lower the sale price to the appraisal.

    Next talk with your realtor. They know the obligations in your purchase contract. If you are truely having a hard time coming up with the $ amount you’ll have to have for financing, you can ask your realtor to see if the seller would pay a portion of your closing costs. (If that’s allowed by you lender). In this market the seller is very likely to do this to push through a sale.

    The realtors can deduct $ from their commission but only if the seller would pay your closing costs directly. So instead of paying the realtor the seller pays your closing costs. Your lender typically will not allow a 3rd party to pay expenses on your behalf (except the seller). This will depend on what the realtor is getting currently. $ 3800 could be more than the realtor would make. Remember, your agent doesn’t get the commission. The company they work for does. The company then in turn pays the agent. So although it may seem like alot, the amount your agent gets compensated with may not be.

  5. Reply
    February 17, 2011 at 11:58 pm

    Maybe consider asking your lender about gettng a downpayment assisstance from Nehemiah or another gift program. Of course the seller will have to agree to contribute. What kind of loan is it? Some loans allow the buyer to roll certain closing costs into the loan, such as mortgage insurance premium. If all fails and if your loan allows it, just go back to the sellers and ask if they will contribute the 3800. They may considerate it, because after all, theyve invested alot too in order to get the house sold. Why would they say no and risk having their home sit on the market and pay another mortgage payment.

  6. Reply
    February 18, 2011 at 12:54 am

    100% financing is not the same as closing on a purchase without bringing any money to the closing. If this was not communicated to you from the beginning, your mortgage professional has not done their job correctly.

    How long is it until your closing? If you have some time, your mortgage company can arrange to give a credit towards your costs in return for a slightly higher rate on the mortgage. You might also have some time to comparison shop. I trust you know that the first year’s worth of home owner’s insurance needs to be paid in advance as well?

    Make sure you aren’t paying any origination or discount points – those would be an easy place to look for reduced costs. If the seller isn’t contributing anything towards your closing costs – see if they might be willing to do so to the tune of 1,000-2,000 or so, they might prefer to do that rather than lose the sale.

    Finally, if you have the time, don’t be afraid to comparison shop your mortgage. Contact a broker or two (full disclosure – I am one) and see if they can improve your situation.

    Best of luck!

  7. Reply
    February 18, 2011 at 12:56 am

    You should have a good faith estimate. This should explain the cost to you. The real estate commission won’t be there. You should see the commissions in the sales contract. Alot of the money you will have to pay at closing will be you insurance and taxes. Let us know if you can get a reduction on those. There are other fees that can be negotiated. You should check with few different banks for your loans. Let them know you are shopping around and take the best deal and see if anyone can beat it.

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