Saving on Closing Costs!

If you’ve ever bought a home, you know that closing can be a confusing — and expensive — process. You’ve found your perfect home, but you’re already a bit queasy about handing over that down payment. Then at closing you’re hit with a couple thousand more dollars in miscellaneous costs.

What exactly are all of these fees?

In The ABCs of Closing Costs, Mike Williamsof Prudential Premier Properties provides a helpful list of some of the fees you may encounter in closing, from the loan origination fee to the prepaid interest fee.

Closing costs typically end up costing 3 to 5 percent of your purchase price. However, with a little forward thinking, you can take away a bit of that sting. In another Real Estate Guide article titled Real Estate Buyer’s Closing Costs, you’ll find some tips and tricks on saving money on your closing costs. Here are a few of the tips outlined in the article:

• Did you know that you can negotiate closing costs with the seller? You can. And once you’ve nailed down the arrangement, make sure it’s in the purchase contract.
• Shop around for your homeowner’s insurance policy. That way, you can compare rates instead of letting the lender choose the policy.
• Use the same title search company that the seller used when the house was listed. This will save you money and increase efficiency.
• Never schedule your closing on a Monday. You’ll end up paying interest for three extra days, since your lender will have to put your mortgage money in escrow on Friday.