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Managing Your Closing Costs

Miles Kimhan
(NMLS# 364852)
President of CU Network Services

Whether you’re a first-time home buyer or refinancing your current home, there is one last expense that, for some, can be an obstacle closing costs.

Unfortunately, closing costs can be expensive, averaging about 3% to 5% of the purchase or refinanced amount. However, these costs can be negotiable and kept under control. With proper planning and negotiating, you could save yourself thousands of dollars in closing costs.

While you won’t be able to negotiate all your closing costs, it is important to identify those costs that could possibly be reduced or even eliminated. The experienced loan officers at CU Network Services have been in the mortgage lending industry for over a combined 60 years and have guided numerous home buyers from pre-qualification to final signing. Below are some of their tips that should prove helpful for home buyers when the time comes to sign on that dotted line.

Have the seller pay the closing costs.

It may be a long shot and a little risky, but it’s worth a try. If the seller is really eager to close the deal, they may be willing to help with some of the closing costs. On the other hand, if prices have already been slashed, the seller may not be as open to the idea.

Don’t be afraid to ask for explanations ahead of time.

Ask your lender to break down all closing costs in advance in order to avoid any surprises later. Ask for an itemized list with an explanation of each item so you will know what to expect.

Be on the lookout for inflated fees.

As a subsidiary of Hawaii Central Federal Credit Union, CU Network Services subscribes to the same values and customer service principles as those of its not-for-profit parent company. So rest assured that none of their third-party fees are inflated. What you will be paying for a credit report and other thirdparty fees are exactly the same amounts as what has been paid out to these companies. Some lenders may include fees in the closing costs that should not properly be charged to the borrower. That’s why you should make sure you understand each item and challenge what you find questionable.

Always get a Good Faith Estimate (GFE) and match it against your actual closing costs.

A GFE is a document which itemizes all estimated closing costs, including lender’s fees, appraisal charges, and thirdparty fees. By Federal Law, your actual closing costs for origination charges must reflect the same amount as your GFE, whereas all other settlement services charges cannot exceed more than 10% of your GFE. CU Network Services is very scrupulous about making sure closing costs reflect the Good Faith Estimate.

However, before you consider these closing costs tips, you first need to find the right lender…one you have confidence in and feel you can work with successfully. At CU Network Services, there is no application fee so you can sit down and talk with an experienced loan officer to see how they can assist you with your specific financing needs. Whether you are buying your first home or refinancing your existing home, they understand the importance of a fast turnaround in terms of getting your loan processed. CU Network Services takes pride in getting its customers the funds they need fast! To set up an appointment with a loan officer, please call 529-4599.

Home Loans are processed by CU Network Services (NMLS #375459), a wholly-owned subsidiary of Hawaii Central Federal Credit Union (NMLS #412820).

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