ClosingÂ on your home-purchase deal costs money -- about 3 to 5 percent of the purchase price, plus your down payment. You'll be taking the money you owe to the document signing meeting, and you won't see any of it again until next year's tax refund arrives to erase the sting of closing day.
Advance Tips for Saving Money
NegotiateÂ closing costsÂ with the seller and make sure your deal is in the purchase contract.
Hire the same company to do aÂ title searchÂ that the seller used when the house was listed for sale. This reduces the cost and means a more efficient process.
SomeÂ first-time home buyerÂ programs help with the down payment and closing costs. Ask prospective lenders if you qualify for lowÂ down paymentloans and whether a portion of your closing costs can be wrapped into themortgage.
Don't schedule closing for a Monday. Your lender will have to put the mortgage money inÂ escrowÂ on Friday and you'll pay interest on it for three extra days.
Tips for Saving at Closing
You have the right under federal law to get, and by all means do so, an itemized list of fees at least one day prior to closing. This is provided on theHUD-1 Settlement Form. All fees that you and the seller must pay are itemized separately. Go over the list ahead of time.
Read the sales contract one more time. Make a list of closing costs you agreed to pay and check it against the HUD form.
Check the lender's preliminaryÂ good faith estimateÂ against the final document. Question any changes and additional fees.
Shop forÂ title insurance. Title Insurance and the associated fees make a up a big chunk of your closing costs. Shop around to find the best price. Make sure you are getting a guaranteed quote on all associated fees and charges.