3 Ways to Reduce Your Closing Costs

Closing costs are extra and typically run 2-5% of the final sales price of a home. Some of these costs are nonnegotiable — but did you know that others can be reduced or eliminated entirely? Here’s how: 

What’s Nonnegotiable

Any fee attached to a government service is usually set in stone. This includes state and local recording fees and prorated property taxes. Certain services including home appraisal and flood certification fees also fall into this category, as they’re often required for your mortgage.

How You Can Reduce Closing Costs  

Go over the loan estimate to find out what (if any) fees are negotiable. Origination fees (e.g., application processing, credit review) can often be rolled into the loan balance to eliminate upfront costs. This is done in exchange for a higher interest rate, but it can cost you more over the life of the loan.

• Shop around for home inspection, land survey and title settlement services. You can also reach out to ask for trusted recommendations — a big benefit of having a loan expert on your side is getting access to an array of referrals for other professionals you’ll need throughout your homebuying journey.
• Ask for seller concessions. In certain situations, sellers will agree to pay for home repairs, agent fees and other closing costs. Your agent will have a good understanding of what you may be able to ask for, but also keep in mind that certain loan programs can restrict what sellers can cover.
• Look for assistance. There are government programs to help reduce or even eliminate certain costs for qualifying buyers. These programs typically cater to first-time buyers, low-income buyers, veterans and active-duty service members. 

Interested in financing a new home? Let’s work together to help you save. Reach out to discuss your options.