For most home buyers, closing costs are one of the biggest up-front expenses of a new home loan – and sometimes they come as quite a surprise.
You’ve saved and saved for your down payment and, now, you have to come up with thousands more to close on your mortgage?
Fortunately, we have some simple tips and tricks that can help reduce your closing costs and, as a result, reduce the amount of cash you have to bring to the table before your close-of-escrow date.
Most buyers submit offers that are below the seller’s official asking price. Most people assume that sellers build in a little “wiggle room” in their listing price and – let’s be honest – no one wants to pay more for their property than absolutely necessary.
If sellers do indeed have a little room for negotiating, you could make your offer at or near full price but request that the seller contribute to your closing costs. Although you’ll still be paying these costs yourself, you’ll essentially be financing them into your loan rather than having to bring in the cash at closing.
But, because not every home loan program allows a seller contribution, check with your mortgage lender to make sure this is a workable solution for you.
If you’re an active duty service member, veteran, or the surviving spouse of a member of the military, consider using the U.S. Department of Veterans Affairs home loan program. VA loans require the seller to pay your closing costs, making the dream of homeownership a more achievable reality.
Although you must meet the eligibility requirements, VA loans often have a more favorable interest rate than other mortgage programs. Talk with your mortgage lender to see if one of these loans is right for you. You’ll need to b
In Utah, many municipalities and agencies offer down payment and closing cost assistance programs for qualified buyers. Although these programs change each year, depending on available funding, they can provide invaluable assistance with home loan closing costs.
Talk to your loan officer to determine what programs are currently available in your area and what you need to qualify.
This last tip is one of the simplest of all, and can potentially save you hundreds (or thousands) of dollars in closing costs: close on your loan as close to the last day of the month as possible.
The cast you must bring to close includes per-diem (per-day) interest charges based on how many days into the month you close your loan. If you close on the last day of the month, you will minimize those interest charges as much as possible.
But the best way to ensure you get a home loan that truly suits your needs and goals is to work with an experienced mortgage lending professional. At Integrity First Lending, we specialize in low-down and zero-down home loans.
We take the time to understand your needs and your goals, and then we get to work on making those dreams a reality. We understand how difficult it can be to put together enough cash for a down payment and closing costs but we don’t believe those challenges should stand in the way of you becoming a homeowner.
With convenient office locations in South Jordan and Tooele, Utah, Integrity First Lending assists clients throughout the Salt Lake City area and northern Utah. Contact us today to get started. We look forward to helping you with all your new home mortgage needs, including zero-cost home loans.