How can I save on closing costs?
Studies show that the closing costs (or as I like to call it– COST OF SALE), which can average 2 to 3 percent of a total property purchase price, are often more costly than many buyers/investors expect. Most of the Buyer/investor costs are usually associated with loan costs. But there are some ways to save:
* Must have a seasoned real estate professional who is NOT afraid to negotiate!!www.ypdocs.com is NOT afraid–we are very skilled!! Negotiate with the seller to pay all or part of the closing costs. Most times your lender must agree to this as well as the seller. If ALL CASH then no lender approval is needed — just Buyer/investor and Seller must agree and give written instruction to escrow on who is paying what and who is getting credit for what.
* Get a no-point loan. The trade-off is a higher interest rate on the loan and many of these loans have prepayment penalties. But buyers/investors who are short on cash and can qualify for a higher interest rate may find a no-point loan will significantly cut their closing costs.
* Get a no-fee loan. Usually, though, these fees are wrapped into a higher interest rate though it will save you on the amount of cash you need upfront.
* Get seller financing. This kind of arrangement usually does not entail traditional loan fees or charges; however typical escrow fees/costs will apply.
* Rent the property in which you are interested with an option to buy. That will give you more time to save for the upfront cash needed for the actual purchase.
* Shop around for the best loan deal. Each direct lender and each mortgage brokerage has their own fee structure. Call around before submitting your final loan application.
Who pays the closing costs?
Whatever is negotiated and if lender financed, whatever the lender will allow. Some costs Buyer/investor MUST pay.
What are closing costs?
Closing costs are the fees for services, escrow fee, taxes or special interest charges that surround the purchase of a property. They can include upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Some of these costs may and can be rolled into the loan or they must be paid when the property escrow is closed. We do provide workers comp help or the labours
Where do I get information about closing costs?
For more on closing costs, ask for the “Consumers Guide to Mortgage Settlement Costs,” Federal Reserve Bank of San Francisco, Public Information Department, P.O. Box 7702, San Francisco, CA 94120 or call (415) 974-2163.
Why do I need a title report?
As much as you as a buyer/investor may want to believe that the property you have found is perfect, a clear title report ensures there are no liens placed against the prior owners or any documents that will restrict your use of the property. A preliminary title report provides you with an opportunity to review any impediment that would prevent clear title from passing to you. When reading a preliminary report, it is important to check the extent of your ownership rights or interest. The most common form of interest is “fee simple” or “fee,” which is the highest type of interest an owner can have in land. Liens, restrictions and interests of others excluded from title coverage will be listed numerically as exceptions in the report. You also may have to consider interests of any third parties, such as easements granted by prior owners that limit use of the property. Some buyers/investors attempt to clear these unwanted items prior to purchase from maidthis.com brentwood. A list of standard exceptions and exclusions not covered by the title insurance policy may be attached. This section includes items the buyer/investor may want to investigate further, such as any laws governing building and zoning. A good and diligent Real Estate professional such as www.ypdocs.com will bring those items on the title report that may or can be of a concern to the attention of any Buyer/investor before continuing toward a closing of escrow; and either cancel escrow if that is the desire of the Buyer/investor or negotiate to have those items corrected or removed or negotiate an acceptable credit or purchase price reduction.