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Closing Cost plays an important role when you buy or sell a house. It can indeed disturb your budget. Closing costs usually include title policies, inspections, recording fees, reserves, courier charges, etc. The lender charges several fees that raise up the closing costs the most. A rule of thumb states that closing costs vary from anything amidst 1% to 4% on purchase price of the home.

Here are some tricks to negotiate the Closing Costs while buying or selling of home:

· Based on the buyer's Good Faith Estimate (GFE), the lender charges allots points. This further defines the origination fees of the loan. Check that when the buyer submits a credit score the lender cannot charge very high fees.

· Make sure that the non recurring closing costs are not surcharged. These are the costs that can be levied only once. These include the following:

- Title policies

- Notary

- Escrow

- Wire fees

- Attorney fees

- Courier or Delivery

- Recording

- Endorsements

- Transfer Taxes of the State, the County or the City

- Natural Hazard Disclosures

- Home Protection Plans

- Home Inspection

· It must be checked as it is recurred several times. The amount levied on them must be controlled as much as possible. Closing Costs on a house include the fire insurance premium, property taxes, flood insurance (if that is required in the area), private or mutual mortgage insurance premiums and the prepaid interest.

· Always check with your lender before you negotiate closing cost on a house that involves a seller credit because the lender might not allow it.

· Check that closing costs on a house do not include the Yield Spread Premium (YSP) on the GFE. Actually if for the mortgage deal you had hired a broker and he lands you up in a bad deal at a high rate of interest, the bank would give the broker a kickback. That is termed as Yield Spread Premium (YSP).