How To Lower Your Closing Costs

by Susan Brown, Broker/Realtor® 10/06/2019

The closing cost is the last sum of money home buyers to pay after which there will be no further payment. The closing price can be surprisingly huge. This bill ranges from 3% to 6% of the mortgage. Do the math, and this means that the closing cost on a $300,000 home is around $9,000 to $18,000.

It is understandable that many home buyers are eager to complete their payment and move in, but there is a need to compare prices just as you research prices of a similar product when you set to buy a refrigerator, TV, or a car. Here are some strategies that will enable you to lower your closing cost:

Request a ‘Loan Estimate’ from the Lender 

Asking your lender for a ‘Loan Estimate' form is the first step to take towards minimizing your closing cost. The ‘Loan Estimate' form is a three-page document that your lender will issue to you within three working days.

A loan estimate allows you to make a comparison between companies and also lets you some specific fees that are peculiar to the lender you have chosen.

Be aware of where the savings are 

You will find the total closing cost as well as the amount you need to close the loan at the base of the first page of the Loan Estimate form. Check page two, section C of the Loan Estimate form, there you find the heart of your savings.

Push back on the charges of the lender 

Some lenders might charge a flat fee that covers services like originating and underwriting while others charge may have a separate price for each of the services. There is no problem with charging a separate fee for such services, but when there are more than one or two lines of itemized charges, you should be cautious when dealing with such a mortgage company. Also, take note of the names of the fees, demand for a further explanation from your lender if you notice a charge with a vague title.

Ask your Seller to contribute 

You can ask your seller to provide money to meet your closing cost demands. However, this contribution depends mainly on the market situation as well as the home because sellers may not oblige if there is aggressive competition among buyers. 

Go for a mortgage without a closing cost 

Going for a no-closing-cost mortgage is another strategy to consider. If you don't have enough cash, a no-closing-cost mortgage will be of great benefit. This strategy works like this – you won't have to pay the closing cost, but it will add up to your monthly mortgage payment.

About the Author
Author

Susan Brown, Broker/Realtor®

Hi, I'm Susan Brown. Every sale has a buyer, a seller, a challenge, a peak, a valley a closing, & a solid story. A good agent makes that story pleasant. Although I lean towards representing Sellers, I find myself with Buyers who seek an active listener, a knowledgeable agent & a futurist. Let's begin the narrative.

PROFESSIONAL INFORMATION

NC Real Estate Broker: REALTOR, 2012 to current

CA Real Estate Sales Agent/REALTOR License, 1979-2019 (25+ years) 

Los Angeles, CA: Internet/Online/New Media Sales/Business Development-Startups, IPO & Post IPO

Los Angeles, CA: Financial Marketing @Quotron Systems, now Reuters

NC-UNCW: Center for Innovation & Entrepreneurship: Google Analytics Certified

Boston, MASS: High School Math Teacher

CREDENTIALS & MEMBERSHIPS:

BA Degree: University of Massachusetts, Amherst Mass

Distinctive Properties® -Certification, Luxury Homes, ERA®

Own America-Certification, Investment Program, Coldwell Banker Seacoast

Seller Security Plan (SSP®)-Certification, We Buy Homes, ERA®

Member: Cape Fear Realtors (Local MLS), NCAR (No Carolina Association of Realtors), & NAR (National Association of Realtors)

LEED (Vers. 4-Course Completion: US Green Building council Chapter ((USGBC) 9/17/2015

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CAPE FEAR MLS: Governmental Affairs, Global Business Council, Project Member

Cucalurus Film Festival, Volunteer

Kenan Chapel, Landfall, Wilmington, NC, Volunteer

Wilmington, Jewish Film Festival, Volunteer & Grant Writer

Independent Film Festival, Volunteer

Cape Fear Women in Technology, Founding Member

OLLIE (Osher Lifelong Learning institute), UNCW, Wilmington, volunteer

AMERICAN ASSOCIATION OF RETIRED PERSONS (AARP): Wilmington, Volunteer

WRAR MLS: Governmental Affairs: Strong Neighborhood Action Program (SNAP), Project Member