Whether you’re buying or selling, you’re probably wondering how to avoid closing costs. They’re a pain no matter what side of the transaction you’re on; for buyers, they can add to an already expensive purchase; for sellers, they take a sizable chunk out of the sale price of their home. Unfortunately, there’s no way to eliminate them altogether, but there are ways you can lower your closing costs regardless of the state of the market. Not all of them are straightforward, and not all will save you a huge chunk of cash. In this guide, we’ll explain tactics that buyers and sellers may consider to reduce their closing costs. Keep in mind that the viability of any strategy will depend on the particulars of each sale and overall market conditions. Buyers are typically on the hook for the following closing costs: However, closing cost etiquette varies in different locales. For example, Maribel Frey explains that in San Antonio, where she is a top real estate agent, it’s actually customary for the seller to pay the title fees, not the buyer. HomeLight’s Closing Costs Calculator can help you understand your costs as a buyer. The tool takes factors such as your type of mortgage into account to give you as accurate a figure as possible. Here are a few ways you might be able to lower those costs: Before you get pre-qualified for a home loan, consider shopping around for a mortgage to get a better interest rate and possibly lower fees. Many of the buyer’s closing costs in the transaction come from costs associated with the mortgage, so this is a big opportunity to save. Some banks offer deals on mortgages to existing customers. For example, they might waive or reduce the recording fee.How buyers can reduce their closing costs
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