When you are looking to sell your home, there are a lot of fees that can be associated with it. Some of these you cannot avoid, some you can and others you can reduce. Today, we are going to look at how to reduce the closing costs on selling a home.
Since the lending industry is highly competitive, many of them are willing to offer a reduced closing cost when finalizing the sale. It’s similar to buying a car in the way that you can negotiate down from a sticker price when you threaten to go to another dealership.
Use your own bank
If you are already a member of the bank that you are attempting to get a mortgage from, it will be a lot easier to reduce these closing costs. Many banks offer this as a way of customer retention (which is the most important part of business since new customers cost more to acquire.)
If you say that paying a closing cost is a deal breaker and that going to another bank is a possibility, your bank is likely to waver and give you the deal you want. It can seem like it’s the wrong thing to do, but you have to be competitive in a competitive finance world.
Acquire a Good Faith Estimate
Lenders are now required by law to give out a Good Faith Estimate to anyone that is borrowing money from them. This will help prevent mortgages that may be deemed as taking advantage of customers by means of nickel and diming them.
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