Buying a home can already put a hole in your pocket and paying for the closing costs can also be equally painful. These fees must be paid (no matter what) to the lenders and other third parties such as title/escrow and insurance.
There are 2 types of closing costs. They are called recurring closing costs and non-recurring closing costs. Recurring closing costs are charges that must be paid more than once. On the other hand, non-recurring closing costs are once in a life time charges.
If you want to reduce the closing costs follow these advice:
1. Ask the seller if he/she could cover part of the closing costs as part of the transactions. The lowest amount that the seller can cover is 2% of the purchase price and the highest amount allowed is 9%.
2. Shop for closing costs. When looking for a lender, also make sure to look at their closing fee charges. Different lenders charge different closing fees. So, search for a lender with low rate and low fees - this could give you HUGE savings.
3. Read the contract carefully. Some lenders charge junk fees - and you don't want to pay for those.
4. IF you close towards the end of the month, you can reduce the number of days of per diem interest due at closing. However, this can be a busy time for lenders and they might not close in time.
2. Shop for closing costs. When looking for a lender, also make sure to look at their closing fee charges. Different lenders charge different closing fees. So, search for a lender with low rate and low fees - this could give you HUGE savings.
3. Read the contract carefully. Some lenders charge junk fees - and you don't want to pay for those.
4. IF you close towards the end of the month, you can reduce the number of days of per diem interest due at closing. However, this can be a busy time for lenders and they might not close in time.
If you have more questions on closing costs, feel free to contact me.
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