One of the scariest things to be surprised with in buying a home is the amount of closing costs. Especially when you only thought you would have to have a down payment. It happens to first time home buyers, investors and even agents. Today we're going to talk about ways that might help you bring the amount of that cost down. 

  • When you're shopping for lenders ask each one if they will give you a Loan Estimate form before you apply for the loan. You can compare the forms this way. 
  • Look at the items on Page 2, Section C. you can save money by searching for and choosing a Title company which combines services. And obviously, just like you would shop around for prices for a normal pest company, do the same here, and do it for surveyors too. I like to say, if you don't ask, the answer is already "no". 
  • Really pay attention to your lender fees that are listed. Are there a lot of really vague ones like "delivery fee" or "funding fee"? It's usually best to choose a lender that has one flat fee that bundles all the services. 
  • Ask the seller to contribute. Again if you don't ask, the answer is already "no". 
  • Careful here, but look for a no-closing cost mortgage. Sounds great right?! Those closings costs are still there, they're just rolled into your monthly mortgage payment. 
  • Here's a surprising one, sign the loan papers at the end of the month. According to NerdWallet, you can reduce your interest this way. "Multiply your loan amount by your interest rate — for instance, 4% = .04 — to find your annual interest charge. Dividing that by 365 gives the daily interest charge. Now, multiply that figure by the days left in the month to see the savings."
  • Ask your bank for discounts and rebates. You do it when you're shopping for everything else, so why not now? 

So stop all that worrying! There's lot of ways to save on those closing costs! 

 

Still a little confused? Give our office a call and our Team will help you find your dream home, and help you through each and every step! 

Head over to NerdWallet and check out their closing cost calculator to give an estimate on what you might be looking at for closing costs.