Today’s money tip is about saving money on your closing costs. Did you know that the closing costs on a new home can range between two and five percent of a property’s purchase price? When you apply for a mortgage, do your homework – talk with multiple mortgage lenders to find their best options regarding rates, costs and structure. When you do apply for a mortgage, your lender is required to give you a good faith estimate – which is essentially a list of all estimated closing costs. Be sure to review it carefully for any hidden fees or confusing items that need to be addressed. Remember: it’s just an estimate, actual fees may vary.
Another method for saving money at closing is to negotiate with the seller. See if he or she will split the closing costs with you. It’s a buyers market and there’s a good chance you may get them to pay part, or all, of the closing costs.