K.M. Minemier & Associates is a certified Woman Owned Small Business (WOSB) engaged in full service real estate asset management and marketing.

HUD Articles

6 Savvy Ways to Save! On your Real Estate Closing Costs.

September 15, 2016

As a first time homebuyer you are likely to be surprised or even blind-sided by costs of closing a real estate deal. So it is a good idea to understand upfront exactly what your mortgage lender is going to expect and be prepared to negotiate. First of all, know you local market. In some markets closing costs can be as little as 1% and in some, the lender may require as much as 10%. But regardless of where ever you are looking to purchase, you may be able to reduce your closing costs significantly with a little help from our article.

Reissue Rates:
If the property seller purchased title insurance within the last 10 years then you may be able to get a discount on your insurance! Ask for a copy of their policy and show it to the title company in order to request a reissue rate. You may even save on a survey if the issuing company will simply update the previous one.

Shop Around:
There are certain items included within your loan services that will adjust your rate. Shop around and find out which services are best for you and your budget. This may include things like settlement companies, title insurance companies, pest inspectors, and homeowners insurance companies. Your lender will give you a list to choose from but you are not required to use them. Shop around and see what is the best fit for you!

Ask For The Seller’s Help:
If you’re struggling with closing costs (or would just like to save some money), then it may be worth it to ask the seller to cover some of the closing costs. It is unlikely they will cover all of them but if they are very motivated sellers, it could save you a couple thousand, so why not give it a try?

Close At The End Of The Month:
When you close on a home you have to pay pro-rated costs on things such as insurance premiums. If you wait until closer to the end of the month, this could help to reduce the amount of money you have to shell out at the closing table.

Before and After:
Be sure to go over your initial approval from your lender to that which is given to you at least 3 days before closing. Sometimes a lender will detail costs for items within your initial quote and then all of those services will not be used. Make sure that you are not charged later for things you were initially approved for, any discrepancies will easily be hashed out and removed from your closing costs.

When Rates Are Low, Skip Points:
When closing on a mortgage, you are given the option to purchase points which help to “buy down” your interest rate. Each point costs 1% of the loan value and will be paid up front during closing. Mortgage interest rates are currently quite reasonable, so while you may save money in the long run, you may want to skip buying points up front, especially if you’re not sure how long you will be staying in the home.

Home buying is a the biggest investment for a lot of people…but the costs don’t just stop at closing, after you finish with closing there is the moving costs and new furnishings for your new home. So, the more you save on closing, the more you will have for the fun part of moving into your new home!

Back To Article List