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Concerned About High Closing Costs?


Buying a new home is exciting, but with that excitement comes the stress of the unknown and the insecurity of the uncontrollable. One big concern for most first time buyers is closing costs – can they afford them, what will they be, and what exactly do they cover. We have talked a length about what they are (the fees associated with closing on a house), but is there anything you can do to reduce the fees?

To start, closing costs vary depending on your location, home price, and even timing. But even in a high closing cost state (ones that have higher taxes generally) there are a few things you can do to try to reduce them.

  1. Shop around. You should never accept the first offer you get with most transactions surrounding a home purchase, including your lender, title insurance company, insurance policy, and even the inspection. When talking to potential lenders, you should get estimates about closing costs. Compare these and even negotiate, making sure there aren’t any hidden charges in there (which is surprisingly common).
  2. Get a lender credit. A lender credit means you pay to higher mortgage rate each month but your actual closing costs will be lower. If you are planning on staying put forever this is an ok option, but beware of becoming house poor!
  3. Ask for a seller kickback. This doesn’t usually work in our market and can even offend sellers, but if you are desperate and the property is stale you can give it a go. We can often negotiate a deal that makes both parties happy. For more tips and tricks, give us a call!




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Kyle Barber

Kyle is passionate writer, independant thinker, and digital savvy lady with a deep love of marketing and all the challenges it presents.

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