Question:

How much real estate good faith estimate costs should I expect?

Answer:

Before you enter any agreement with a lender, make sure you obtain a real estate good faith estimate. Closing costs should not exceed 7% of the loan amount. Loan origination and application fee, buying points, title insurance, borrower and lender's attorney, the house appraisal report, PMI, escrow funds and others will be listed on the real estate good faith estimate and costs will vary greatly mostly depending on your location.

How to save on real estate good faith estimate costs?

Well, loan origination fee could sometimes be negotiated and it can account up to 3% of the loan amount.

If you are not taking a government backed loan, you may not be able to avoid setting an escrow account. However, if you are putting a large down payment (20%or more), the escrow account deposit may be avoided.

If your lender acts as your attorney, you may be able to cut several hundred on the attorney fee.

Also, the seller of the property may be willing to contribute to some fees - such as points or house valuation.

Normally, you should be able to negotiate with your lender some or most of the costs in the 800 section of the real estate good faith estimate. Just don't wait for the closing date to do so.

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