First time home buyer. At the closing of a new build is it possible to negotiate discount points at closing?
February 21st, 2010 by admin
I am looking to have the lender / builder eat up the discount points (1) at the time of closing. Is it good practice to negotiate at the closing table and stand fast at not paying the point(s).
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You already have a contract at closing. I think you need to negotiate before that!
You can technically negotiate at any time before the fial papers are signed. However, doing so will likely cause you more headaches than it’s worth because the good-faith nature of previous negotiations will be thwarted, plans for moving will have been made and everyone will think that you have a deal. It’s best to handle it before closing if possible.
On the other hand, buying a home is one of the most important investments you will make, so you absolutely must be willing to play hard-ball. While you may anger the other parties to the contract, that may be worth it to secure a deal that you are happy with. You don’t want to spend the next years wishing you had done something that you didn’t do.
But, like any negotiation, if you are going to play hard-ball, you have to be willing to walk away if your offer is not accepted. Otherwise, your “weakness” will be transparent and you won’t win that close to the sale.
Good luck!
You should know what you pay before closing. Dont go to closing if you dont agree with the points and fees.
Here is the reason. It will totally mess up your TIL (Truth in lending) If it shows you need to pay 1 point. The affects your APR (annual percentage rate). That one point goes to the lender or broker. If you are not paying for that point they need to know before. Your APR is based only on what you pay. If you do it at closing and the lender or the builder decide to pay it, almost always you will have to get new docs. The APR will be wrong.
I strongly suggest not playing this game at closing, do it before. Ask them to send you a copy of the HUD-1′s before you go to closing. Negotiate before you show up, otherwise you are wasting everybodies time.
At closing you may be under the gun to move. The builder probably has a binding contract that he may be able to sue you for damages if you do not honor.
I think what will happen if you try to do this is a lot of yelling and then you will either close or be sued.
Dude, you are too late! You were supposed to do that at bidding, not closing.