Nothing can make a prospective homebuyer’s stomach turn quite like finding out the possible closing costs ahead of them. From agent fees to taxes, dealing with lender fees, and figuring out an inspection: it’s a lot of money that can result in six to ten percent of the home’s cost. Although that number can be huge, raising more and more the more lofty your home’s price is: you don’t have to deal with a full ten percent!
Here are the five best ways to reduce your closing costs and save your wallet some heartache!
Haggle WIth The Seller
If you’re in a buyers’ market or are in an area where the homes stay on the need for a long time: haggle! Often you can get your sellers to cover a large portion of the closing costs by working on a deal. This option is less successful if you’re in a sellers’ market because they’ll have the power and options. Don’t make any outlandish offers because this could mean you get turned down, and the seller doesn’t want to do business with you anymore.
Forgo the Agent or Realtor
Although finding an agent or realtor feels like one of the most important steps to buy a house: it’s not! If you’ve purchased a home before or have family that’s more practiced in this, you could work around not having a realtor or agent. Most realtors and agents charge between three and six percent of the sale for a commission. This lump sum can be the largest part of your closing costs, making it so that your closing costs are nearly impossible to pay off. Work directly with the sellers, and be professional, and you can make this work.
Fold Cost Into Your Mortgage
This option isn’t available for every mortgage, but some lenders have the opportunity to fold your closing costs into your final amount due. Choosing to do this might be an excellent idea for some, but it’s essential to consider how much your monthly payments are already and how much this will make them.
Shop Around For A Lender
Don’t stick with the first lender who approves you unless they’re the best! Different lenders have different fees, and because of this, you could save money by shopping around. Find a lender that offers the amount you need and is willing to work on your terms to ensure that you can afford this house and handle the down payment.
Read More: 10 Best Banks for Home Loan in India 2021
Move Less Expensively
Although we all know that professional movers can be a lifesaver, sometimes it’s just not worth it. If you’re already at your wit’s end, dropping a couple of hundred dollars an hour on professional movers to take your things from your apartment to your new home isn’t feasible. Save your money by going the classic route. Most of the time, there’s a month overlap between when a home buyer is moving in and when their apartment’s lease is up. Take that full month to slowly move your things over, taking apart larger furniture and pieces to travel more comfortably.