Reducing Closing Costs

Even if you’ve found yourself a sweet no-down-payment mortgage solution, there are still costs involved in purchasing a home – and not all of those costs can find themselves rolled into the mortgage.  Sometimes, you’ll even find yourself making some of those payments through the process – but one thing’s for sure – you need to be aware of what you’re paying for and whether or not you have the option of negotiating some of those costs, or shopping around for more cost-effective alternatives.

How to Reduce Closing Costs

  • Compare Lenders Fees
    • Not all lenders are created equal.  Although you’re probably aware that the details of the loans are the same, (such as VA or FHA loans), the lenders fees are most definitely not all the same.  As for Loan Estimate forms from different lenders, and compare those costs to find yourself the best deal.
  • Shop Around for Specialists
    • Understand that there are a lot of steps involved in purchasing a home. Those steps come with fees- and some of those fees can be negotiable.  Shop around for your pest inspection, survey services, home inspector, etc.
  • Ask the Sellers to Contribute
    • As part of your offer, ask the sellers to contribute to a percentage of your closing costs.
  • Ask Your Lender about Discounts and Rebates
    • Your lender may have particular discounts or rebates that can help offset the costs of your closing.  Find out if your lender, bank, or even government has programs available to help you fund the costs associated with the purchase of your new home.