The offer you put on your Tampa Bay home is just one cost you can negotiate. Closing costs are another place to save money and keep more cash on hand for the move. Take a look at these six ways to lower your closing costs.
Shop Around for Your Lender
Not all lenders are the same. They offer different products and charge different fees. It pays to shop around for the best option for you. You can even ask if they’ll match the fees of another lender. They might just do it.
Negotiate the Fees The Lender Charges
Have you heard that everything is negotiable in real estate? We really mean that. When you receive the list of fees you can expect to be charged, ask questions about them. Find out if obscure or small fees can be waived. The worst the lender can do is tell you no, and you never know what they’ll be willing to do until you ask.
Look for a Loyalty Program
Check your own bank to see if they offer reduced fees for customers who apply for a mortgage through them. If not, find out if the lender you’re considering does. It might be worth the effort to open up a new bank account if it means you pay less at the closing table. Make sure to read any rules and restrictions the lender provides.
Ask the Seller to Help
Depending on the specific market, this isn’t always a good option. In highly competitive markets where a seller receives multiple offers, they’ll likely say no. But if the home has been on the market a while, it’s a potential solution. This works best when you put in a full or near-full price offer, but every listing is different so ask your agent if it’s a good option for you.
Close at the End of the Month
Ever notice that most closings are at the end of the month? There are plenty of reasons for this, but one is that it costs you less money. When you close in the middle of the month, you’ll be charged a per diem interest for the rest of the month. Close on the last day (or as close as you can), and you’ll save money.
Consider Wrapping Your Closing Costs into the Loan
This isn’t an option for everyone, and your lender may not allow it, but it’s worth considering. By wrapping your closing costs into the loan, the total of the loan will be higher as will your monthly payment. On the other hand, you’ll have to pay less cash at closing. It’s not a perfect solution, and it’s not a good one for everybody, but it may be something to ask your lender about.
There are plenty of things you can do through every step of the home buying process to save money here or there. Don’t pay more than you have to when you’re ready to buy. Negotiate, shop around, and ask plenty of questions.
Ready to buy your next home?