"Interesting that you managed to get them to budge on escrow—makes me wonder, has anyone had luck negotiating other fees or penalties, like late charges or prepayment penalties?"
I've had mixed luck with this myself. Late charges seem pretty locked in from my experience—banks love their fees—but I've actually seen some flexibility with prepayment penalties. Depends heavily on the lender and how motivated they are to close the deal. Doesn't hurt to ask, though...worst case, they'll just say no and maybe chuckle quietly behind your back.
"Late charges seem pretty locked in from my experience—banks love their fees—but I've actually seen some flexibility with prepayment penalties."
Yeah, I'd second this. Late fees are usually set in stone because they're a steady revenue stream for lenders, and they don't have much incentive to waive them. But prepayment penalties can be a different story. I've found that if you approach it methodically—first, clearly outline your reasons for wanting the penalty reduced or removed (like planning to refinance or sell early), then show them comparable offers from other lenders without penalties—you might get somewhere. It helps if you're already deep into negotiations and the lender sees you're serious about walking away.
One thing I'd caution though: always get any concessions in writing. I've seen situations where verbal promises didn't hold up at closing, and that's never fun... Banks aren't exactly known for their memory when it comes to favors, haha.
I learned this the hard way when refinancing a few years back. The lender verbally agreed to waive the prepayment penalty, but come closing day, suddenly no one remembered that conversation... Lesson learned: always get it in writing.
"Lesson learned: always get it in writing."
Couldn't agree more—verbal promises evaporate pretty quickly when money's involved. I've seen clients run into similar headaches, and it's frustrating every single time. It's not even about trust, really... just clarity and accountability. Good on you for sharing your experience though; might save someone else from the same headache down the line.
Yeah, learned that one the hard way myself when I first bought my house. Had a contractor say he'd "throw in" some extra work, and guess what happened when the bill came around... expensive lesson, but definitely sticks with you.
