Savings After the Sale

Borrowers may be able to find additional savings if the seller already has an owner's title insurance policy. If the seller owned the home for less than 10 years, the buyer may be eligible for a discounted "reissue" rate on the policy, Ewing said.

That discount, which is most commonly given to owners refinancing their homes, is offered because research on the title of the property was conducted recently and issuing the new policy will not require as much work. It can amount to a 40 percent discount on a portion of the title insurance premium.

"If you can locate an owner's title insurance policy, it could be beneficial," Ewing said. The policy does not have to have been issued by the same company, he said.

Home buyers should also try to identify potential problems before settlement. "By the time you get to the closing table, it is kind of late to make serious changes" to the settlement costs, Gumbinger said.

That shouldn't stop buyers from trying. If a buyer does find unexpected charges in the settlement costs, he or she should call the lender or a lawyer to try to work it out. "Make a stink if they don't change it immediately," said Rind, a lawyer with Lerch, Early & Brewer in the District.

But buyers unable to persuade the title company or loan officer to change the questionable fees are left in a tough position. If they walk away from the deal, they risk losing their deposit and could face legal action from the seller, Rind said.

The alternative is to complete closing but file a complaint with a government consumer-affairs office and demand the difference back later, she said. "You don't want to be in breach of contract," she said.

In many cases, the disputed costs amount to hundreds rather than thousands of dollars, which may not be enough to risk the legal complications. "It's a tough situation," Rind said. "The best course of action is to get all of the figures upfront so you are not surprised at closing."