The purchase of a home can require a substantial financial commitment. In addition to making a new monthly mortgage payment, there can also be a considerable amount of money due up front, before you’re even given the key to the front door. But, by shopping around and having a good understanding of what these additional fees consist of, you may be able to lower the amount that will be due from you on the day of closing. For example, just like when purchasing any other high-ticket item, shopping for the best deal through a mortgage lender can be beneficial.
In some cases, for instance, you may find that you can get the same amount of loan for a lower interest rate – and, when it comes to a 15 or 30 year mortgage, shaving even just a quarter or a half percent can make a significant difference in what you ultimately end up paying.
In terms of closing costs, you may be able to reduce your loan origination fees if you obtain your loan from a bank you already do business with. Likewise, be sure to also compare the cost of the home inspector and other services that will be required before closing.
You could also try to negotiate with the seller to see if they will pay some of the closing costs. Based on how motivated they are to get the property sold, it could be well worth it for them to kick in a certain amount – which can in turn, be a win-win scenario for you and for them.
If you’re in the process of seeking a new home and you have questions about how you can reduce the cost of obtaining a mortgage, give us a call. We can help you weave your way through the home buying and mortgage application process so that you won’t be hit with any hidden surprises along the way.