When you go to buy your new home there are several things to consider other than the price.
Closing costs on buying a home can be substantial and it is a very important subject that buyers should be aware of.
Many things can determine the amount of closing costs when buying a new home, and I'm going to outline them for you and provide a few tips on what to look for to walk away from closing looking good.
Your financial lender plays a huge role in the amount of closing costs on buying a new home.
Depending on which type of loan you've opted to go with, they may offer incentives at the closing table.
These may sound great, but be careful.
Just because lenders are offering a great rate on the mortgage doesn't necessarily mean that everything is going to be a great offer.
The closing costs on buying the new home may be several thousand dollars, an unexpected cost that may leave you worse off.
This may work to your advantage though if you have some extra cash lying around.
Those extra closing costs on buying your new home may work to your advantage.
If your lender is offering a low fixed rate for the term of the loan, but charging you a few thousand in closing costs, this reduced interest rate may pay for itself on the term of the loan.
Something else you may want to consider is that when buying a home, you can request that the seller pay some of your closing costs.
They may not always be in a position to do this, or even want to, but it doesn't hurt to try does it? Either way you go, make sure that your lender provides you with a closing statement as many days before closing as possible.
Many times lenders only have the numbers available hours before closing.
This can be very bad because in many states, the closing costs on buying a home have to be paid in cash or certified funds.
You cannot loan the money or add it to your credit card.