06/05/2022
👉There are a few ways you can reduce your closing costs and make your purchase a bit more affordable.
1. ✅Ask the seller (or your agent) to contribute. Sellers will sometimes offer a concession and pay some or even all of a buyer’s closing costs in order to get the deal done. They’re more likely to do this if their home has been on the market a while or they’re in a hurry to sell and move on.
2. ✅Shop around for your services. When you get your loan estimate from your mortgage lender, you should see a section marked “services you can shop for.” We have our own preferred Lenders that can help you.
3. ✅Lender credits. Sometimes, if you’re willing to an accept a higher interest rate on your loan, your lender will grant you “lender credits,” which you can put toward your overall closing costs.
4. ✅Choose a later closing date. As part of your closing costs, you’ll have to pay “prepaids,” which cover your homeowner’s insurance, mortgage insurance, interest, and property taxes until your first mortgage payment is due. If you choose a closing date that is later in the month, this cuts down on the number of prepaid days you’ll have to cover, thereby lowering your closing costs altogether.
5. ✅Look for assistance programs. If you’re on a tight income, you might qualify for various closing cost assistance programs and grants. Check with the housing authority in your state and look for private programs in your area to see if you’re eligible.
