Closing costs are often overlooked by the majority of homeowners when applying for a mortgage. These expenses vary from one lender to the next and it is easy to overpay on these charges. Here is what you need to know about avoiding this costly mistake.

Closing costs are an important part of your mortgage because it is cash you will have to pay in order to secure the mortgage. When all is said and done your lender and title company can add thousands of dollars in charges to your bill. Some of these charges are subject to negotiation; if you shop carefully and compare all aspects of the mortgage you can minimize some of these expenses.

The fees you pay at closing are influenced by a number of factors. Origination fees for example are charged by the lender for processing your application. These fees are completely up for negotiation; do not be afraid to haggle with the mortgage lenders over origination fees. Title fees depend on the state you live in and you are pretty much stuck paying what the title company charges. As a rule, your total closing costs should not be more than five percent of the loan amount, excluding the down payment; however, if you are paying this much you probably haven