5 Ways to Lower Your Closing Costs When Purchasing a Home
Blog posted On June 29, 2022
Closing costs are the final hurdle home buyers have when purchasing their new home. They are around 3% to 6% of the borrowed loan amount, which can be a significant amount on top of the down payment. Luckily most costs can be negotiated, which can help you lower the amount of money you will have to pay at the closing table.
- Ask the seller to contribute – This is one of the easiest things to do to help lower your closing costs. With the current market currently shifting, sellers are becoming open to contributing to a portion of the buyer’s closing costs.
- Shop around to different lenders – Some lenders have higher fees than others, so it is important to shop around to make sure that you are getting the best deal.
- Ask your lender which fees are negotiable – Lenders want your business. If you do not want to shop around talk to your loan officer and see what fees are negotiable or if they can provide a lender credit.
- Shop around for title and settlement services – The lender has the normal companies that they go to for this, but you can shop around for these services. Look around for local companies or get referrals from family and friends.
- Close at the end of the month – Closing costs normally include prepaid daily interest for the days between the day you close and the day that your first payment is due on your house. Closing at the end of the month can help with minimizing the amount of fees that you will owe.
Don’t let closing costs be the reason that you delay buying a home! The right lender will be able to work with you to make your homeownership dreams a reality.
Ready to start shopping for a home? Start on your application today!