Buying a home is expensive. Whether you’re looking for something simple and off the beaten path or a modern condo firmly ensconced in the bosom of the Silicon Valley, you’re likely going to be paying hundreds of thousands of dollars (if not more) for your home. With prices like that, saving up for the down payment can (and often does) take several years. Unfortunately, many would-be homeowners don’t take into account the closing costs of the deal, and find themselves having to save a little longer before they can buy their new home. Luckily, there are ways that you can lower your closing costs and make buying a new home that much easier. Here are a few of them:
- Find out if your bank has a loyalty program. Some banks will assist their customers with the closing costs if the mortgage is obtained through the bank.
- Close at the end of the month. When a deal closes at the beginning of the month, per diem interest must be paid through the whole month. When a deal closes at the end of the month, like the 30th, then per diem interest for that month will not accrue.
- Work the closing costs into the loan. The loan from the bank will not need to be paid off for years, and having the closing costs included in that loan can make it much easier to handle than forking over several thousand dollars right away.
- Lastly, why not get the seller to pay the closing costs? Negotiating this into the deal can be a net-positive for both parties involved. The buyer is able to save a little money and the seller can deduct the closing costs from their taxes.
For information and a free consultation, please feel free to give me a call.