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Netter Real Estate Inc
Richard Bocchieri, Netter Real Estate IncPhone: (631) 848-0748
Email: [email protected]
Strategies to Lower Your Closing Costs

by Richard Bocchieri 04/14/2019

The closing cost is the last sum of money home buyers to pay after which there will be no further payment. The closing price can be surprisingly huge. This bill ranges from 3% to 6% of the mortgage. Do the math, and this means that the closing cost on a $300,000 home is around $9,000 to $18,000.

It is understandable that many home buyers are eager to complete their payment and move in, but there is a need to compare prices just as you research prices of a similar product when you set to buy a refrigerator, TV, or a car. Here are some strategies that will enable you to lower your closing cost:

Request a ‘Loan Estimate’ from the Lender 

Asking your lender for a ‘Loan Estimate' form is the first step to take towards minimizing your closing cost. The ‘Loan Estimate' form is a three-page document that your lender will issue to you within three working days.

A loan estimate allows you to make a comparison between companies and also lets you some specific fees that are peculiar to the lender you have chosen.

Be aware of where the savings are 

You will find the total closing cost as well as the amount you need to close the loan at the base of the first page of the Loan Estimate form. Check page two, section C of the Loan Estimate form, there you find the heart of your savings.

Push back on the charges of the lender 

Some lenders might charge a flat fee that covers services like originating and underwriting while others charge may have a separate price for each of the services. There is no problem with charging a separate fee for such services, but when there are more than one or two lines of itemized charges, you should be cautious when dealing with such a mortgage company. Also, take note of the names of the fees, demand for a further explanation from your lender if you notice a charge with a vague title.

Ask your Seller to contribute 

You can ask your seller to provide money to meet your closing cost demands. However, this contribution depends mainly on the market situation as well as the home because sellers may not oblige if there is aggressive competition among buyers. 

Go for a mortgage without a closing cost 

Going for a no-closing-cost mortgage is another strategy to consider. If you don't have enough cash, a no-closing-cost mortgage will be of great benefit. This strategy works like this – you won't have to pay the closing cost, but it will add up to your monthly mortgage payment.

About the Author

Author
Richard Bocchieri
Welcome to Long Island Living at its best! The South Shore of Suffolk County is a suburban area that runs along the shoreline of the Atlantic Ocean. Homes in this area consist of primarily residential properties. This area tends to be diverse in culture and income as it varies by hamlet, village or town. Residents along the South Shore have access to many beaches, parks and recreational activities. I pride myself on my honesty, integrity, hard work and personal service. My first career was in education, starting as a teacher then finishing as a guidance counselor and achieving my Master’s and two PD's. In 1986, I began my real estate career. In a sense, I am still an educator and offering guidance; this time I am outside of the classroom educating my clients on the selling and purchasing processes; which have become so complicated recently and guiding them safely through the confusing and ever-changing real estate market. It is very satisfying to me to help people with not only the greatest financial asset in their lives but their greatest emotional asset; where they celebrate holidays, raise their families and live their lives. I take the needs of my clients very seriously and as a result, I am proud to say, over 90% of my sales are the result of referrals and recommendations. Primarily, my areas of service are the Townships of Babylon and Islip on Long Island’s beautiful South Shore, near pristine beaches and wonderful boating, yet only 55 minutes from Manhattan; truly the best of both worlds. I'm a graduate of the Real Estate Institute and am certified as a Senior Real Estate Specialist. I also hold a license as a Notary Public. Please feel free to call or visit so I can help you fulfill your real estate dreams. I am a Full Service Licensed Real Estate Associate Broker and provide the following: Free appraisal Rental Mortgages International relocation services Sales Home warranty New homes Free school report Water front specialist Notary public Please feel free to call or visit so I can help you fulfill your real estate dreams. Click Here for a few of my current Listings: http://tours.tourfactory.com/results.asp?u=114062&p=1 Click here to see all of my success stories in 2017: Click Here for a Free E-Guide: Millennials and Homeownership Click Here To See My 5-Star Reviews on Zillow: Testimonials Click Here for the 2019 Winter Buyer Guides & Tips - Complimentary Click Here for the 2019 Winter Seller Guides & Tips-Complimentary