Alright, here's a few methods to vastly lower closing cost on your next move...
- Wrap the closing costs into the loan. You're already borrowing a huge amount. You can add a few extra thousand, at the cost of a slightly higher rate, and get into the house with less cash upfront.
- Ask the seller to pay. There's plenty of loans that will allow sellers to assume these costs in the form of a credit to the buyer. For Sellers, this is a good method to help secure the sale and, is also a tax-deductible expense.
- Close at the end the month. Interest is paid in a per diem fashion. If you close early in the month, lets say June 3rd, you will have interest accumulating from the 4th until the 30th. Close at the end of the month, like the 29th, and you pay for only one day of interest.
- Look for a loyalty program. Lots of banks and lenders offer to contribute to closing costs for buyers if they use the bank to finance their purchase.It's a way of offering a reward for being a customer. The amounts are pretty significant, usually a few thousand.
Well, there you have it. Using these strategies to dramatically reduce the closing cost will make owning your new home that much sweeter.