So you are gearing up for your next big move -- purchasing your very own dream home. Now, let's try to tick things off the checklist.
Finding the right property of your choice? [check!]; savings for the down payment? [check!]; monthly source for mortgage payment? [check!?]; unflinching resolve and a whole lotta grit? [check!]. And now you think you're ready.
Chances are, either you really are a first-time buyer, or you simply just haven't the foggiest clue. Because, we could only wish, things were as simple and pretty straightforward as that. Then again, here comes closing costs.
Just what are these mostly unheralded but significant financial stumbling blocks in home-buying?
Closing costs are some sort of administrative fees that you have to pay on top of the usual down payment and mortgage monthly dues. These costs may include fees you pay during application, home inspection, loan origination, appraisal and survey, and that for an attorney, notes Credit.com's AJ Smith for USA Today.
And, here are some tips you may want to consider in order for you to save some bucks on closing costs.
Choose your location.
The Federal Savings Bank, a veteran-owned and federally-chartered financial institution, advises you to look for a location which offers low taxation. Location does matter in the real estate sector.
The Bank figures that the amount of closing costs you pay varies from different areas and could range from a reasonable two percent to a tad-more-steep five to six percent. Taxes play a major role in the total closing costs you'd pay for.
Negotiate with your seller.
It is also advisable to talk to your seller, and try to snag a better deal out of the negotiation. We could use some of our haggling skills here. For instance, you could sweet-talk them to shoulder part of the closing cost expenses.
Shop for attorney fees.
Attorney fees are included in the many fees you pay for as closing costs. These are expenses incurred upon inspection of the title and legal papers from the bank. The Federal Savings Bank also advises you to consider hiring the services of a third-party real estate attorney for consultation. Look for those that would not charge you a ridiculous amount.
So basically, and just like what any other smart shopper would tell you, you may want to explore your options and check on the "length of the aisle" first before deciding on anything.
Closing costs may not be getting enough merit of consideration for the many homebuyers out there, but we are going to need to account for them just the same.
And of course we're going to need a whole lotta grit.
