How to Lower Closing Costs

How To Lower Closing Costs

Closing costs help facilitate the sale of a home and both buyers and sellers

pitch in. Some closing costs can be paid before the home is officially sold

and others are paid at the end.

However, closing costs aren’t set into stone and they can be negotiable. You

can ask your real estate agent or lender with help in estimating your actual

closing costs. Look over everything to make sure all the numbers are right

and then you plan accordingly in how you’re going to lower them.

Loyalty Programs

Some banks offer assistance to buyers when they use them to help pay for

the purchase. It’s a way for a bank to reward loyal customers.

Closing at the End of the Month

Schedule your closing at the end of the month so you don’t have to pay the

per diem interest for so many days.

Get Multiple Quotes

Get estimates from different lenders because you’re looking for the best

package of closing costs and interest rates. There might be something better

out there.

Junk Fees

There may be some fees a lender charges that may be negotiable, such as

origination fee, processing fee, or application fee. Make sure to ask if what

you are being quoted is the best they can offer.

Title Costs

Sometimes title insurance and settlement are bundled together. You may be

able to find a title and settlement company that is less expensive.

Negotiate With the Seller

You can try to negotiate with the seller in paying for some of your closing

costs. Buyers can ask for credit or to cover lender expenses during the offer

and negotiation process.