3 Ways to Save Money on Closing Costs

Everyone wants to save money and buying a home is probably one of the most expensive things you can do even though most of the fees are wrapped up in the mortgage payment. However, closing costs, appraisals, inspections, and down payments are almost always out-of-pocket so how can you save money on your mortgage closing costs? Here are three simple ways to save money on closing costs the next time you buy a home.

Negotiate with the seller.

Closing costs include several different fees and services that you don't have to necessarily pay for all of them. Seller credits are away for the seller to pay for some of these closing costs. If you're purchasing a home with a VA loan, closing costs are automatically paid by the seller. Some USDA loans are the same. But, it never hurts to ask the seller to cover some of the costs.

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Close near the end of the month.

When you borrow money, you pay interest based on how long you have had the money at the end of the month. By closing or the end of the month, you only borrow the money for the last few days. Prorated interest is based on the borrower having money for three or four days instead of a full two or three weeks. If you close on the second or third of the month, your interest will be prorated for nearly a full month.

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Shop around for the best loan.

Just like you are shopping for a house, you don't want to neglect shopping for the right mortgage. You can request that mortgage lenders use lower-cost providers to reduce origination fees and you can always negotiate to have these fees removed, waived, or reduced.

Then again, you could go with a zero closing cost mortgage or no closing cost loan. There are other options when it comes to paying practically nothing for zero interest but you will pay more for these loans in general and potentially have a higher interest rate.

For more information on zero down home loans, low closing costs, or how to negotiate, contact my office today.