With home prices at an all-time high, those of us in real estate and real estate-related industries must work together to help home buyers save money wherever and whenever we can. I invite you to consider the following recommendations. Encourage your home buyers to consider the following strategies for reducing closing costs. 

Negotiate Fees with the Lender 

• Loan Estimate Review - Carefully review the Loan Estimate provided by the lender to identify fees that may be negotiable. 

• Ask for Lender Credits - The lender may offer credits, which can reduce upfront closing costs. 

Shop Around for Third-Party Services 

• Title Insurance - Obtain quotes from multiple title insurance providers to find the best rate. 

• Homeowner's Insurance - Compare different homeowner’s insurance policies to get the best deal. 

• Home Inspection Fees - Shop around for competitive pricing on home inspections. 

• Appraisal Fees - Search for lenders that have access to Appraisal Management Companies with reduced fees. 

• Appraisal Waiver - Ask the lender about the possibility of waiving the requirement for an Appraisal Report.  

Utilize the Lender’s Special Programs 

• No-Closing-Cost Options - Some lenders may offer home loan programs where some or all closing costs are covered by the lender. This is done often in exchange for a higher interest rate. 

Down Payment Assistance Programs:  

• Look into any state or local programs that a lender may partner with who helps with closing costs. 

• Search of a lender who offers direct access to down payment assistance programs (DPA) 

Seller Concessions 

• Negotiate with the Seller - Request that the seller covers part of the closing costs, often in exchange for a slightly higher purchase price. 

Timing the Closing 

• End of Month Closing - Closing at the end of the month can reduce the amount of prepaid interest due at closing. 

Waive Certain Fees 

• Waive Escrow Accounts - Opting out of an escrow account (if allowed) can save on initial funding fees. 

• Reduce Points - Paying fewer points upfront (or none) can lower closing costs, though it may result in a higher interest rate. 

• Reduce or Waive Credit Report Fees The lender may offer programs where the credit report fee is waived or reduced. 

Take Advantage of the Lender’s Vendor Relationships 

• Preferred Vendors - The lender might have relationships with certain vendors who offer discounts on services like home inspections or title insurance. 

Use Gift Funds or Grants 

• Gift Funds - If eligible, you can use gift funds from a relative to cover closing costs. 

• Grants and Assistance Programs - Research any grants or assistance programs available in your area that the lender might accept. 

Each of these strategies can help reduce the overall out-of-pocket expenses when closing on a home. It's essential to discuss these options with your loan officer to understand what applies to your specific situation.