Closing Costs - Hand In The Cookie Jar

In this day in age where profit margins are slim and competition is fierce; mainly because everyone has their "hand in the cookie jar" so to speak. What does this mean? Well, take mortgage loans for example. When you purchase or refinance a home there a certain expenses that are unavoidable, whether your loan is $20,000 or $2,000,000 there a certain expenses that must be incurred in order to see the transaction close. For instance, title insurance, appraisal, recording, flood certification, closing, overnight fees, courier fees etc. These fees can really add up in a hurry and most must be done to ensure both a proper closing and to protect the interest of the buyer/owner of the property. Other fees are often found in purchase transactions as well, such as pest or structural inspections.

These costs incurred do not come without a price, no one works for free. A mechanic is not going to fix your car without a charge, you cannot walk down to your local Sub Shop and expect a hand out, nor can you walk into Bank or Mortgage Office and expect to ask for X without paying to get it. Appraisers charge money to provide a fair and unbiased opinion of value, title companies charge money to research a particular property and check for liens, easements, surveys etc. Inspectors obviously charge money to go through a home and make sure that it is structurally sound or point out possible hazards, (i.e. a crack in the foundation). What's the point?

Well, just because there are fees involved does not mean that you cannot get a fair price. Do business with someone that has relationships with title companies, appraisers, inspectors etc. Most often than not if the company is reputable then they have already laid the ground work by doing a lot of volume through these entities and intern can give their clients a discount solely on the fact that they do a substantial amount of business with their referral partners. Do your research and choose a company that "has it all" a good reputation, solid referral sources, knowledge, and a "fair" price for doing business.

Your comments are welcomed!