Closing costs are the burden of any home buyer. They seem inevitable, even unavoidable, but there are steps you can take to lower or avoid them altogether.

 

Work With the Lender

Due to the competitive market, lenders are willing to come down on some fees if you simply ask. When you first shop around for financing, take a look at options that give you a deal on closing fees. Larger banks will have loyalty programs that actually help with these costs.

Speaking of programs, military members can take advantage of VA loans that offer certain benefits. Union members can also receive help financing with discounts and rebates. For more information on these programs, contact your local Veterans Affairs and union offices and speak to a representative.

Have you ever heard of a no-closing cost mortgage? It’s exactly what it sounds like. However, in exchange for no closing fees with a lender, you will be charged a higher interest rate. Before accepting this kind of deal, do some calculations on your own to see if it is financially worth it.

 

Work With the Seller

Once you cut down costs with the lender as much as you can, start working with the seller! Avid negotiators can get the buyer to assume closing costs depending on the agreement you both share. Usually, a seller won’t agree to pay the entirety of the closing costs, so discuss individual fees or simply split the cost 50-50. Another option is to renegotiate the final base cost of the house.

When you agree on a closing date, choose a date towards the end of the month. Most people don’t think of this detail, but paid interest is prorated. So instead of paying an entire month’s worth of interest, only pay for a few days.

Our final tactic? Those who have less cash upfront can simply “roll” the closing costs into the total cost of the loan. It’s a great idea for families who want to save money for the future.