Q:  We are getting ready to our first home and we are overwhelmed by the horror stories we have heard about the closing process.  Can you help us with some information and terms that we should be familiar with?

A:  Every step of the negotiating process, from the time you make an offer, can affect your closing.  It is important to be diligent from the very beginning being ever mindful of the final cost to you, the buyer.  An experienced realtor can give you a huge advantage during this process by helping you negotiate the best possible outcome for you. 

You may be planning to make an offer that includes contingencies such as receiving a satisfactory inspection report or an appraisal.  These are services that you have requested; therefore you would most likely be responsible for the cost incurred.  Your real estate agent should be able to help you negotiate this point with the possible result of you and the seller sharing the cost at the time of closing. 

While there are costs that may be negotiable, there are others that are not.  Title insurance for example, is not a negotiable item.  Title insurance is required by lenders and insures that you are getting a clear title to the property described.  Likewise you can expect to pay for the cost of the research and preparation of documents for your title insurance.

Another non-negotiable item would be filing fees.  This is a fee that is usually collected at the time of closing for the filing of your final documents such as a Warranty Deed and Deed of Trust.  This is a standard cost item that must be paid to the county recorder’s office at the time your documents are actually filed.

Besides the negotiable items between the buyer and the seller there are items that you may choose to negotiate with your lender.  Processing fees and interest rates are among the costs to the buyer that may be negotiable.  As with any negotiating process you should be sure to consult a professional to be sure your interests are fully protected.

To the first time buyer this process can be overwhelming but there is assistance available.  An experienced and professional realtor should be able to walk you through the closing process step by step and direct you toward experts in other professions that you may want to seek advice from.