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Real Estate Q&A - Is it possible to save on closing costs?
Q: Is it possible to save on closing costs?
A: Certainly, once you get pass the sticker shock. Closing costs are expensive. They can average between 2 to 3 percent of the total home purchase price. But here are a few ways to save:
Haggle with the seller. He may pay all or part of the closing costs.
Nab a no-point loan. You may have to pay a higher interest rate, but if you are strapped for cash and can qualify for a higher interest rate, you may find this type of loan can significantly reduce your closing costs.
Grab a no-fee loan. Although the fee is usually wrapped into a higher rate loan, it does offer one advantage you get to save on the amount of cash you would need up-front.
Secure seller financing. These loans typically avoid the traditional fees or charges imposed by lenders.
Shop 'til you drop for the best deal. Every lender has its own unique fee structure; you are bound to find one that works for you.