Tips to Saving Money on Closing Costs
When buying a home there are many costs that need to be calculated into your budget. One of those costs is a closing cost. Closing costs include things such as, the appraisal, home inspection, title insurance, loan origination, and so on. All of these costs need to be paid before a transaction is complete. Closing costs will vary but are usually 3%-6% of whatever the price of the property is.
Here are some tips to keep in mind to help save you money on closing cost:
- Shop around – get quotes from several mortgage lenders. Some lenders will not give you an exact number before you apply for the loan, but they can provide an estimate or a ballpark when it comes to closing costs.
- Be suspicious – offers that seem like they are out of this world, are usually a red flag, be aware and be suspicious of figures that seem especially low.
- Ask questions – if there are line items that do not make sense ask, this could save you money. If something looks questionable make sure you get a clarification of why that charge is there and what it is.
- Mortgage rates should not be the only point you attempt to negotiate with the lender. Closing costs should be a talking negotiation point with your lender as well.
- Ask if the seller will pay for a portion or all closing costs, though unlikely, it never hurts to ask. Some situations such as; a struggling market, the seller is desperate, or the home has been on the market long, can all lead to asking the seller to pick up those costs or a portion of the closing costs.
- Lastly, look everything over once more; never sign papers that you are unsure of.
If you need an attorney to represent you when closing a home, contact our Wauwatosa, WI law firm at 414-259-9300 and one of our experienced attorneys can sit down and talk about your legal needs. We would be more than happy to represent you.
Posted on: Wednesday, May 18th, 2016