Buying a property without using your own money requires financing. Those with the money to lend will charge you fees to borrow from them. It is not inexpensive to finance a foreclosure property. Some of the fees and costs regularly charged include:

• Credit report

• Property appraisal

• Underwriting fee

• Document preparation fee

• Interest points

• Origination fee

Other fees include title insurance, casualty insurance, and certifications. The lender may also require escrow accounts for the payment of taxes, homeowner association fees, and insurance premiums. All of these fees add up quickly and require additional out-of-pocket expenses.

Look for ways to minimize or eliminate costs. Some tips for reducing finance costs include:

• Don't agree to loans with origination fees. Usually one point (1 percent of the loan amount) is charged by lenders to compensate their loan officer.

• Ask for a reissue rate from the title company. Often available if the title insurance was issued within the past year, this can reduce your title insurance cost by 50 percent or more.

• Seek discounts from your casualty insurer by purchasing a multiple-property policy. One policy will give you blanket coverage on all your properties.

• Don't pay points to lower your interest rate. Pay a higher interest rate on the loan, especially if you are not planning to keep the property for a long period.

• Take advantage of special financing deals. Lenders often offer no-fee loans. Consider these over their loans that have a fee.

• Negotiate lower fees from the lender. Document preparation fees and underwriting fees are often negotiable and can be eliminated if there is a likelihood of repeat business.