Top Tips to Reduce Home Closing Costs in Real Estate Transactions?

Closing costs is one of the biggest concerns for buyers and sellers during any real estate transaction. During home buying process most people think that the down payment is going to be enough however you will have additional closing costs to your down payment. There are many professionals will work for you during your real estate transaction who may not even see or talk with you such as title assistant, lender’s staff, escrow agent, appraisers and more. Most of the time closing costs cover all these helpful professionals labor, licenses, education needs, state mandatory filing system and more. You may still have a part that you can work on to reduce closing costs.

Shopping around for title insurance fees may help you to save and talking with different Title Company helps you to see the different options easily for your closing costs.

Remember to ask the seller if they can contribute or pay all of your closing costs at the closing. It is getting harder to find this kind of real estate deals but sometimes you can make this work. You can offer little bit more than the seller was asking and get contribution at the closing towards your closing costs. That way, you are essentially financing the closing costs over 30 years or whatever loan term you have. Only one thing you need to be careful this kind of real estate deals that you may have problems with the appraisal if purchase price is at or near top market value.   

You can always take a higher rate and have your lender credit back to cover some or all of the closing costs, consider talking with your lender who can give you more detailed information on this.

Remember there are some closing costs that you cannot negotiate on them such as property taxes, condo transfer fees and more.

If you can get a loan without an escrow account for taxes and insurance may also help you so discussing this opportunity with your lender may be helpful at this point.

Another item you might be reduced is prepaid interest which you have to pay from closing date to end of the month. All mortgage loans are expected on the first of the month however by closing on the last day of the month if applicable to your situation, you will have no pre-paid interest payment so you will save more.

Shopping is the key to reduce your closing costs before your closing date. You can always shop around for the best rates, title policy, appraiser, home  inspection, escrow fees, attorney fees, home insurance and survey.

Search more for discounts any and everywhere such as organizations you belong to such as your church, go with a lender that you already have an account with, discounts for the work you do (teacher, police officer, fire fighter, EMT, nurse etc).

Trying to reduce your closing costs might be great idea however try to find a good deal while buying your next property so that you will save at the beginning of your real estate transaction.

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