Comments on: Closing Costs and Tutus http://www.buythatduplex.com/2008/11/closing-costs-and-tutus/ Real Estate Investing for Beginner Investors Wed, 02 Jun 2010 16:40:54 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Clifford http://www.buythatduplex.com/2008/11/closing-costs-and-tutus/comment-page-1/#comment-11 Clifford Wed, 18 Feb 2009 21:30:18 +0000 http://www.buythatduplex.com/?p=1003#comment-11 While it may be true that banks/lenders direct loan officers on how to charge, there is no universal charging scheme that all banks follow. Two lenders may charge for the exact same service but be hundreds of dollars different in that service. So when I make the statement "Everything is negotiable", there is nothing stopping a potential borrower from playing one lender against another to try and get a better deal. More importantly, I reject the notion that you shouldn't even try to negotiate. I have asked questions about my loans and have gotten fees reduced. Maybe not thousands of dollars but every bit helps. While it may be true that banks/lenders direct loan officers on how to charge, there is no universal charging scheme that all banks follow. Two lenders may charge for the exact same service but be hundreds of dollars different in that service. So when I make the statement “Everything is negotiable”, there is nothing stopping a potential borrower from playing one lender against another to try and get a better deal.

More importantly, I reject the notion that you shouldn’t even try to negotiate. I have asked questions about my loans and have gotten fees reduced. Maybe not thousands of dollars but every bit helps.

]]> By: Mark http://www.buythatduplex.com/2008/11/closing-costs-and-tutus/comment-page-1/#comment-9 Mark Sat, 07 Feb 2009 19:38:29 +0000 http://www.buythatduplex.com/?p=1003#comment-9 First the loan offer doesn't charge anything. Most fee's are pre-constructed by the bank and the loan officer has to follow those guidelines. The only thing most loan officers can change is if their lender allows them to mark up or down the interest rate and many have gotten rid of that. Brokers can charge a higher fee for themselves because usually they are dealing with bad credit and 1/2 of their deals die before closing and they could be out a lot of time and money if it does. A loan officer averages about $500 per loan and the thats for 60 days of work, follow up, attorney BS, buyer and seller BS and more. Negotiate everything? There is nothing to negotiate. Before you write an article on negotiating with a bank/LO, you should be one first. You would change this article in 2 seconds if you did. First the loan offer doesn’t charge anything. Most fee’s are pre-constructed by the bank and the loan officer has to follow those guidelines. The only thing most loan officers can change is if their lender allows them to mark up or down the interest rate and many have gotten rid of that. Brokers can charge a higher fee for themselves because usually they are dealing with bad credit and 1/2 of their deals die before closing and they could be out a lot of time and money if it does. A loan officer averages about $500 per loan and the thats for 60 days of work, follow up, attorney BS, buyer and seller BS and more.

Negotiate everything? There is nothing to negotiate. Before you write an article on negotiating with a bank/LO, you should be one first. You would change this article in 2 seconds if you did.

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