3 Ways to Reduce Buyer Closing Costs

Buyer closing costs make up a substantial amount of money in most real estate transactions. There are a number of things that make up the closing costs on a real estate purchase and you want to make sure that you do not pay any more than you have to. If you are a buyer, here are a few things that you can do to reduce your part of the closing costs. 

1. Negotiate With the Seller

When you are in a good position of negotiation with the seller, you should be able to negotiate some of the closing costs. Suggest that the seller take on more of the closing costs in order to close the deal. If they are desperate enough for a sale, they will usually agree to the terms.

2. Bring Your Own Appraiser

The house that you are buying will have to be appraised at some point in the process. Most of the time, the bank has their own appraiser that they use. They also usually charge more than they should for this service. If you can shop around, you can usually find a better deal.

3. Shop Lenders

Each lender has different closing costs. Shop around and be sure to request a good faith estimate to compare all of the costs. Lenders are usually willing to negotiate some of their costs, so a little competition may bring the costs down.