Closing a deal on a property is a great relief, as you finally get to own your dream home. However, even after making the purchase, there are still costs to be paid. There are a few costs associated with closing a home, collectively known as closing costs. However, you’ve likely already spent a lot of time and money searching for a home and purchasing it, so do you really want to pay closing costs? Thankfully, there are a few ways that delay, mitigate, or bypass closing costs altogether. How exactly can you do this? Here’s how to get out of paying closing costs when buying a house.
Negotiate With the Seller
The easiest way to get out of paying closing costs as a buyer is to negotiate with the seller. When negotiating a price to buy the home, make sure you bring up the topic of closing costs. While the buyer might usually be expected to pay the closing costs, sometimes you can get the seller to sweeten the deal and throw in some closing costs payments as well. You can use a seller closing costs calculator to see just how much you can ask your seller to pay on the closing costs. The tactic works best when the market is slow and there isn’t a lot of demand for housing. If you try to negotiate closing costs with a seller that is courting many buyers then you run the risk of them simply selling to a buyer who doesn’t mind paying the closing costs.
Include Costs in the Loan
Another way to deal with closing costs is to include them in the loan that you take out for your house. This option has both pros and cons for future homeowners. The positive side is that you won’t have to worry about closing costs immediately. You’re already taking out thousands of dollars in loans, so what are a few extra bucks to cover the closing costs? However, including closing costs in your loan doesn’t eliminate them, it just delays payment. In addition, you’ll have to pay interest on the money you borrowed, meaning you’ll actually end up paying more. However, if you’re struggling and can’t pay the closing costs immediately, including them in your loan is a great way to delay payment until you’re fully settled financially.
One way to avoid paying closing costs is to shop around for different bank programs. There are several banks out there that are looking to entice home buyers to take out their mortgage through their bank. One way that these banks do this is by providing help or total coverage when it comes to closing costs. These programs can be good for both customers and the bank, as the bank gains new customers while the customers don’t have to deal with all of their closing costs. So if you want to avoid paying your closing costs as a buyer, then you should shop around for different mortgages, as it could result in some or even all of your costs being paid.
Close Late in the Month
An extremely simple and easy way to avoid paying closing costs is to simply close late in the month. If you close early in the month, you’ll end up paying more prepaid interest than you would if you closed later in the month. While it all evens out eventually, if you’re someone who’s strapped for cash at the time of their home purchase, then you may want to close at the end of the month to avoid paying that immediate interest.