You dream of owning your own home. You have even done the hard work to achieve your dream. You have saved regularly and lived frugally. When the right property becomes available within your budget, you are all ready to dive right in. However, if you do not have enough cash on hand to cover your closing costs, your hopes of purchasing a home may be dashed – unless you can successfully reduce your closing costs.
How to Reduce Your Closing Costs
Closing costs are not set in stone. If you would like to try to reduce the amount you pay, try one or more of these three suggestions:
Negotiate with the Seller
Depending on the market conditions you are operating within, the individual or corporation selling the home may be willing to cover a portion of your closing costs in order to finalize the deal. You can speak with your real estate agent to determine if this might be a possibility for you, and what concessions (if any) you would have to give up in order to arrange the plan.
Negotiate with the Lender
If you are unhappy with the level of your closing costs, you can also try to negotiate with your lender. They may be willing to make some concessions to secure the deal. For best results, you should speak with your lending advisor and ask them to remove some of the more obscure fees included on the closing disclosure form. After all, the worst that can happen is they say no.
If you have not yet finalized and made a commitment to one lender, you can always shop around to see if you can find a financial institution who is willing to charge lower closing costs. If you find one, you can always take their deal back to your original lender and ask them if they can match it. If they can’t, don’t be afraid to walk away.
Closing costs are an important, but often forgotten, aspect of purchasing a new home. However, they are very much negotiable. By following the tips and advice outlined in this article, you can easily reduce your closing costs.