Helen and Danny Cheek's Blog
You already know that closing costs on a home can come at a hefty price. There are a few ways that you can actually cut down on the amount of closing costs that you may have on a home.
Compare The Costs
You have the right to shop around for a lender who offers the lowest closing costs. You can even ask your lender to match the closing costs of another lender that may have them for a lower fee. Certain fees that are included in the closing are negotiable and flexible. You’re allowed to shop around for inspections, title searches, surveys, and the like. There’s nothing that says you have to go with the company recommended by your lender for each. There should be a list of services that is included in the closing costs on your estimate that you receive form the lender.
Question What Each Fee Covers
When you get the loan estimate, don’t just accept it. Take a look at each item and inquire what the fee includes. See why each item costs as much as it does. Be on the lookout for fees with similar names. The lender could be double charging you without your knowledge. It’s always good to be informed especially where large investments are involved.
You have the right to negotiate with your lender on the closing costs. You can ask for obscure and unnecessary costs to be taken off from the closing. Getting the closing disclosure form as soon as you can will also help you to settle any discrepancies before it’s too late.
Ask The Seller
Some sellers will even be willing to sweeten the deal for you by either lowering the sale price of the home or covering some or all of the closing costs. Depending on the market, you may be able to get the seller to help reduce your burden of the closing costs.
If You’re Refinancing
Every time that you refinance your home, you’ll need to pay closing costs. There are a couple of ways that you can save in this situation. One is to waive the appraisal altogether. If the home has recently been appraised, you may be able to waive the appraisal completely. You can also request an automatic appraisal rather than a full appraisal in order to save some money.
The other option that you have when refinancing to save money is to save on the title insurance. You can ask for what’s called a re-issue date, which is a less expensive rate for the title insurance for refinancers.
Closing costs are a part of the process when you buy a home. If you’re careful, you might be able to save some money on these mandatory fees.