Buying property isn’t cheap and involves more than just the cost of the property. Associated fees can start to add up so, for some tips on how to cut down on your closing costs, read on.
- Comparison shop lenders. Besides shopping for the best interest rate, also research the vendors each lender uses for things like the survey fee, title search, and title insurance. Compare prices on these vendors and ask to switch vendors if you find a better price.
- Shop around for different real estate lawyers.
- Compare home insurance quotes.
- Negotiate with the seller and find out if they will cover some of the closing costs. This is only likely to happen with a property that has been challenging to sell.
- If you are a first-time home buyer, investigate incentives.
- Try to close at the end of the month to reduce the amount of interest applied before the first mortgage payment.
- Ask lenders if they offer any incentives for choosing to borrow with them – such as cash back or waiving fees.
While some closing costs are fixed, such as taxes, there are several ways you can reduce the amount of your closing costs, so you can walk into your new place with a little bit more in the bank than you would otherwise.
