- 1). Shop around with multiple mortgage lenders. If you only work with a single mortgage lender, you most likely will not have much leeway when it comes to negotiating. If you talk to several lenders, they will all give you estimates of closing costs. When you apply for a loan, the mortgage lender must give you a good faith estimate with information about all of the closing costs.
- 2). Choose a lender that you would like to work with. This does not necessarily have to be the lender with the lowest closing costs or rate. Choose the lender based on customer service, loan options and how comfortable you are.
- 3). Use the good faith estimates that you received from the other lenders to negotiate. When you have other estimates to prove that other lenders are willing to offer lower closing costs, your lender may be willing to lower its closing costs. Ask to have specific closing costs lowered. For example, the document preparation fee may be negotiable, depending on the lender.
- 4). Ask for justification of each closing cost item. If the lender cannot justify a particular charge, ask for it to be removed. Some items are not required to get the deal done. If the lender knows that you are willing to shop around, he may be willing to lower its own costs to get your business.
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