Home Closing Fees Can be Lowered: 3CALoan
Being a good homebuyer, you have settled and negotiated on the home’s value but it is not everything. You are more opportunity to save your money. One of them is by lowering your home closing fees while buying a home. Home closing fees consist of services and specific fees that you have to pay for closing on your home loan. The closing fees will generally come in between 2% to 6% of the home value but it is also dependent on your loan program. Here are some strategies that you can use to save your money on closing fees your loan.
ALWAYS SHOP AROUND
If you taking the home loan first time than you may not realize that many of the fees and rate with the home loan process are negotiable. Every real estate agent or lender will recommend you certain home inspector or company to use. Their recommendation will be good for your home loan process. So, you should follow their recommendation. You can also compare the prices for these services so that you can get the best deal.
THINKING BEFORE BUYING POINTS
You also have the option to “buy down your rate” but it will only dependent on your home loan program and loan lenders. Discount points will work when the cost of the one point will be the 1% of the home loan’s value. It is worth paying points in exchange for a lower interest rate if you have decided to stay in your home for a long-term. You should calculate before making any decision about the points.
ASKING THE SELLER TO SWEETEN THE DEAL
You should discuss the closing fees with a lender before trading with a seller. In some loans, the seller can pay a percentage of the home price as a closing fee to buyers but the amount which seller can pay will be dependent on the loan program. If there is no detail in the card about the cash contribution, you can simply ask a seller to decrease the amount of home price to help balance the closing fees that you will pay.
COMPARING LOAN ESTIMATE FORMS
You should compare few lending institutions so that you will find your best option for the home loan process. You should have trust on the lender. Every lender had a different term and unique fees mentioned in their loan estimate. So, you should ask questions if you don’t know about any of the charges which are meant in the loan estimate.
RESEARCHING HOMEOWNERS INSURANCE OPTIONS
There is homeowners insurance which you will pay monthly with your mortgage payment, but there is one more type of insurance which you have to pay during the time of closing. So, you should be ready for the insurance cost at the closing. You can save your money on home closing fees by choosing the less expensive insurance policy.
TAKING ADVANTAGE OF A MILITARY STATUS
If you belong to the veterans and active duty military family then you are eligible for the VA Loans. VA Loans offer a zero percent down payment. So, if you can qualify for the VA loan then you don’t have to pay the down payment that alone can make huge savings. In VA Loans, there are many ways to minimize the home closing fees.
Final Thoughts
Buying a home is the best investment that you can make in your lifetime. You can save your money by finding some ways to minimize your closing fees. You can use that money to reinvest in your home which you have saved at closing fees. Just be sure that for saving few amounts, you are not sacrificing the quality. After all these steps you will be on your way to decrease the home closing fees. For more helpful home buying tips, 3CALoan can help you find your answers. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. Contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.
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