Who wouldn't want their closing costs to be lower? Here are three tips to have a little cash left in your pocket when you buy your home:
1) Ask the seller to contribute to your closing costs
Lenders typically allow 3% (Of the purchase price) for sellers concessions, as long as the 3% is not more than the amount of the nonrecurring closing costs.
2) Close loans later in the month
Because lenders collect interest for the remainder of the current month when you close. If there are only a few days left in the month, you'll only pay a few days worth of interest.
3) Raise your insurance deductible
You can reduce the amount of cash needed to close by increasing the amount of the deductible on your homeowner's insurance policy. The larger the deductible amount, the lower the premium. Most lenders require buyers to pay their first year's homeowner's insurance premium in advance.
Always review your HUD settlement statement prior to closing, this breaks down everything that you are paying for at close. Review your HUD in order to compare it with your Good Faith Estimate, and to catch any "surprises" before your sitting at the closing table.
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