Saving on closing costs can help keep more money in your pocket when buying a home. While some fees are fixed, others are flexible. Here’s how you can cut down on costs.
Shop Around for Lenders
Lenders charge different fees, and the companies they use for services like surveys, title searches, and title insurance may vary in price. Compare lenders and ask if you can switch vendors if you find a better deal.
Compare Real Estate Lawyers
Legal fees add up. Get quotes from different real estate lawyers to find competitive rates without sacrificing quality.
Check Multiple Home Insurance Quotes
Insurance is a requirement, but rates differ. Compare quotes from various providers to find the best price for the coverage you need.
Ask the Seller to Cover Some Costs
If a home has been on the market for a while, the seller may be open to covering part of your closing costs. It’s worth bringing up during negotiations. Common costs you can request include appraisal fees, title insurance, and transfer taxes.
Take Advantage of First-Time Buyer Programs
First-time buyers may qualify for government programs that help with closing costs, such as land transfer tax rebates. Check what’s available in your area.
Close at the End of the Month
Closing later in the month reduces the amount of prepaid interest you owe before your first mortgage payment.
Ask About Lender Incentives
Some lenders offer cash back or waive fees to attract borrowers. Ask about any promotions that could lower your costs.
Small savings add up. By being proactive, you can reduce your closing costs and keep more cash on hand for your new home.
