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Avoid Home Closing Costs With These Tips

Buying a house is an immense investment. The price may be high, but should the closing cost be expensiv, too?

The Cureton family was thrilled to find their first home complete with an open backyard for their two kids to play in.  They were prepared to buy it, but they were surprised by “closing costs,” a term Jeff Cureton had never even heard about.

 

Surprisingly, the “closing costs” could end up being thousands of dollars of fees in the paperwork. But according to Erin Lantz, a mortgage business director at a real estate database called Zillow.com, this doesn’t have to be the case for first time home buyers. Her advice helped the Curetons save more than 6,000 dollars.

 

Lantz’s Advice:

  1. Consults sites like Zillow, Trulia and Redfin to get ballpark figure for the range of fees you should be paying. Lantz explains that the sites “will detail out all of the closing costs, everything associated with that particular quote.”
  2. Don’t be afraid to negotiate fees. After examining the fine closely with the help of ABC NewsReal Money team and Lantz, the Curetons were able to push back on the fee for “origination charge,” which was a fancy way of saying processing fees. Lantz also helped sort out the “credit report check” and the “appraisal fee."
  3. Shop around for the most reasonable fee, Lantz helped the Curetons save more than 6,000 dollars in fee by switching to another lender.

 

So remember, when it comes time to close on a home don't be afraid to ask questions. Closing on your family home doesn't mean you should be hit with large fees during the process. Before making the decision to purchase a piece of property, be sure to review Lantz's tips and avoid spending more than you need.

 

Photo Credit: Getty Images

 

Tags: Budget, News & Trends

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