3 Ways to Save on Closing Costs

When it comes to buying a home, you want to find the best value. Your realtor can help you come up with the best offer for the home of your dreams and negotiate for you with the seller. But even if you get the home for less than list price, you’ll still have to deal with closing costs.

These costs typically come from your mortgage lender — origination fees, application fees, credit report, title insurance, pest inspection, attorney and settlement fees, and so on. In fact, closing costs usually add up to somewhere between 2 and 5% of the purchase price of the home. But there are ways to save on closing costs.

Compare Lenders

Not all mortgage lenders are offering the same thing. When searching for a mortgage loan you should look not just for the lender who can offer the best loan, but the lender who offers the lowest closing costs. When you get a quote for the loan they can offer, ask for a quote of their services. This is not the only thing to take into consideration when searching for a mortgage loan, of course. It may be that the lender with the lowest closing costs also offers the least when it comes to your mortgage loan. But it’s something that should be taken into consideration and can help reduce the blow when it comes to closing costs.

Negotiate

Don’t be afraid to negotiate with your lender one you have quotes for the loan and their services. One of the most important things you’ll need to do is request a Closing Disclosure form, which lays out all of your closing costs. This will allow you to see what is and isn’t necessary, such as redundant or unclear costs, and to ask the lender to drop those costs. You should also compare this with your loan estimate in case there are any inconsistencies. Your realtor may be able to advise you on this and help you find the best ground on which to negotiate with the lender.

You can also negotiate with the seller. If they really want to sell their home, you may be able to talk them into lowering the list price or covering some of the closing costs. This allows them to close on the house sooner while removing some of the strain of closing costs from you.

Ask About a “No Closing Costs” Option

This isn’t for everyone, but it may be worth considering. Some lenders will offer a “no closing costs” mortgage. Of course, that doesn’t mean that the closing costs simply disappear. Rather, they’re added into your mortgage loan. So you’ll have a bigger mortgage to pay off, but you’ll also have more time to pay for those closing costs, rather than having to pay everything upfront. Again, your realtor may be able to advise you as to whether this is the best option for you.

Need help saving money on your closing costs? Talk to your College Station realtor about the best way to ensure closing goes over smoothly both in process and in terms of money.