Like many prospective homebuyers, you may have waited for interest rates to continue the downward trend. However, those rates started an upward trend a few months ago.
In addition, the housing market has engaged in a start and stop recovery, but for the most part, home prices have begun to rise after hitting bottom a year ago. The good news for buyers is that the market hasn’t realized a full recovery, so the house that you’re considering buying is a better value than it was a few years ago.
That’s not all, though.
Closing costs are on the rise
On average in the past year, closing costs are up six percent in 2013, according to Bankrate.com. Many buyers don’t shop around for the best deal on closing costs such as title, credit check, and appraisals. Providers of these third-party services haven’t really had to compete for business over the past few years, so they’ve had carte blanche to charge fees as high as they thought they could.
Saving money on closing costs
There are ways to save yourself some money on closing costs. You just need to know where to look, what to look for, and ask the right questions of the right people.
Watch out for garbage fees
These are duplicate or excessive processing and documentation, underwriting and application fees. Chances are, you may be charged for the same services you're already paying for.
Shop around for lenders
Ask prospective lenders to provide an estimate for closing costs in order to compare the costs.
Negotiate with the home sellers
Ask the home seller to credit you for paying some of the closing costs. They’ll be reducing the asking price of their home, but it never hurts to ask.
Ask your REALTOR®
They will know how and where you may be able to cut costs and make recommendations. Every dollar you save on closing costs is a dollar in your pocket.
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