When you get a new mortgage, whether it is to purchase a new home, or to refinance your current one, you need to make sure that the closing costs and fees you are charged are reasonable. Of course, you may think the closing costs seem unreasonable no matter what they are, but you do have some options for getting them lower.

The fact of the matter is, the mortgage broker must show any fees or costs associated with the transaction on a good faith estimate. This means that appraisals, title work, credit reports, underwriting fees and all other money that changes hands must be reflected on the good faith estimate. The key to lowering your closing costs lies in knowledge. Here are a few things you can do to avoid high closing costs.

Disclose Everything
Make sure lenders know all of the details of your loan. Many things can change closing costs, some you may not even be aware of. Things such as escrow waivers, new construction homes, condominiums and investment properties can all affect closing costs. If you have poor credit, have filed a bankruptcy, are self-employed or haven’t been employed long, it can affect closing costs even more.

Get it in Writing
When you talk to a loan officer, ask to see everything in writing. The mortgage broker should have no problem giving a written guarantee of closing costs. This usually takes the form of a good faith estimate. In the mortgage world, fees and quotes don’t mean anything unless they are in writing. Even then, terms can change based on borrower disclosures or even the property type. If there are changes, find out why.

Shop Around
Check with at least 3 mortgage companies to see if you are getting a good deal. Ask for a good faith estimate from each one. If there are fees and costs you don’t recognize, or if you need clarification on what they pay for, be sure to ask your loan officer.

Be in Control
Always remember that it is your final decision to close on a mortgage. If the terms of the mortgage have changed dramatically from what you were expecting, find out why. There may be a valid reason. If there is no good reason, you can walk away from the closing. Even if you are sitting at the closing table with anxious sellers across from you, you can still walk away. Sure, it may be an uncomfortable experience, but it is your right.

It’s worth your while to do a little extra work to save some money on your closing costs. Always remember to be up-front with your loan officer from the beginning, and get any quotes in writing. Compare good faith estimates with at least 3 other lenders. Finally, stay in control of the transaction as best you can. If you follow these simple steps, you will be much more likely to get a good deal on your mortgage.

copywrite 2006, Matt Blasses Matt Blasses has been a loan officer and mortgage program manager with Mutual Mortgage Corporation since 1994. Visit http://www.blasses.com to get unique insight into the mortgage world.