Even once you’ve found yourself the perfect solution for your mortgage needs, and even if it’s a no-down-payment solution (which are definitely possible – even if you’re not a first-time homebuyer) you need to be aware that there are still closing costs that you should be anticipating. Oftentimes those costs can be rolled into the loan, but not all the costs, and not all the time.
As is the case with homeownership, it’s always better to be prepared than to be caught off guard with a payment you weren’t anticipating. One thing that people aren’t always aware of is that they have some level of control over closing costs- they’re not all set in stone, and some of them are even negotiable. As is in every case, it’s important that you make sure you’ve got the reigns in this journey. Some things to consider when reducing closing costs could be:
- DISCOUNTS AND REBATES
- Oftentimes, your bank or lender may have some discounts and/or rebates that would apply to your particular situation. While you’d hope they’d make you aware of them, that’s not always the case – and it never hurts to ask. Am I right? After all, you don’t get what you don’t ask for!
- SELLER CONTRIBUTIONS
- A common way to reduce closing costs is to ask the seller to help contribute during the negotiation process. Ask for a contribution up to a particular amount, and chances are you’ll get some contribution, if not the full amount asked for. Some is better than nothing!
- A good way to reduce costs is to do some shopping around. Whether it comes to your pest inspection, survey services, home inspection or other specialists involved in the process, you may be able to find a good deal that will help take the edge off of those closing costs.
- LENDERS FEES
- Many people aren’t aware that all loans – and all lenders – aren’t equal. Depending on your lender as well as your personal situation, you may come up with a few different offers if you reach out to different lenders. Take the time to shop around and compare lenders fees. The loan details will likely be similar for similar programs, but the lender fees probably won’t be. Ask for estimates, and compare to find yourself the best deal.
And of course, if at any time you’re not comfortable or don’t understand what’s going on in the process, reach out to your Realtor®. That’s what we’re here for – we’re here to get you home, and make sure you’re comfortable with the process.
Looking for some good recommendations for lenders, title agents, or other specialists? I’ve been in this business a long time, and would be happy to give you some names of people I know and trust.