With higher home prices come higher closing costs. The fees that can stack up against you as you close on a transaction can leave your eyes glazed, but we’d like to help you strategize on your approach to closing. Here are a few ways you can save money when closing.
Shop Around for Services
You’ve already shopped around for the best mortgage rate. Don’t stop there. Some fees you may face can be shopped around too. You may also be able to cut costs when shopping for things like title insurance and home inspection.
Ask the Seller for Help
In the past, it has been a common practice for those who are trying to save to ask the seller to cover some of the closing costs. With the market favoring the seller right now and demand being so high, this tactic may not be your first approach. Discuss it with your agent, and see if it’s an option you should pull out of your back pocket should you need it.
Close at the End of the Month
If you’re able to time your move just right, closing closer to the end of the month could save you some cash. Closing three to five days before month-end instead of 20 days or more, for example, means you’re paying less on prepaid interest. Keep in mind that closing later in the month means you’ll be paying your mortgage payments that are due on the first of the month 30 days after your closing date.
Negotiate Where You Can
The real estate process is all about negotiation, and negotiating shouldn’t stop at closing. Don’t be afraid to ask questions and compare fees based on what other lenders are offering .
If you’re a first-time buyer looking to get into the market, check out our first-time homebuyer checklist to help you plan. Connect with one of 8,000 agents today to help you successfully navigate the market. To find out what you can afford, check out our mortgage calculator for help estimating your monthly payments. Download the REIN.com app and put the power of fresh and accurate listing data in the palm of your hand. It’s available free in the Apple App Store and Google Play Store. For local listings you can trust, start with REIN.com.
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