4 Solid Tips to Help Homebuyers Reduce Closing Costs
by Dan Wolf
on Monday, December 15th, 2014 at 8:57am.
When you finalize your purchase after you buy a new home, you may not be prepared for all of the paperwork you'll have to complete. Your lender will have given you a very detailed estimate and break-down of the closing costs, pro-rations of taxes, deposits and other fees you will be responsible for. Closing costs (a catch-all term for the last fees due) can be a bit overwhelming that it's like a second sticker shock for some.
The fees start with the home inspection and credit report and then build to things like loan origination fees and appraisal cost. But there are some ways to save with a little extra savvy. Here are some tips to help you reduce closing costs.
Look for the lowest fee before you begin. Or even get several quotes from a variety of lenders. There is nothing wrong with applying the "shop around" principle to mortgage lenders. They will understand, they deal with it everyday. Wolf Real Estate Professionals are happy to refer you to good mortgage companies and loan officers who work there.
Understand the neighborhood to get an idea. Closing costs vary depending the locale. For instance, a house in the city is taxed for public water and sewer and city police, while a house in an outlying area, say Palmer or Wasilla, may have significantly lower taxes to prorate at closing due to lower tax rate and fewer public services.
There's no harm in negotiating with the seller. Some homebuyers don't realize what can be included in the deal you strike. This includes having the seller pay all the closing costs, or at least some of them. Talk about this process with your agent to help reduce these fees.
Oversee the entire process from beginning to end. This includes the final review process. Because many fees are arranged in good faith, ensure that when you are reviewing the paperwork that these are the same. If they have shifted significantly (or even a little -- it's your money, after all!), discuss options with a your agent or a real estate attorney before proceeding.
Buying a home can be stressful to be sure. But don't lose your head in the process. A large and life-changing purchase like a house should be dealt with properly and with extra concision. This includes reducing costs where possible.
For additional information on buying or selling a home, please contact us with your questions or concerns at 907-248-9653 or visit us at www.anchoragehomesearch.com.