While the weather outside gets colder, Westfield real estate remains hot. Experts believe Buyers seek out Westfield homes because of the easy commute to New York. Families, in particular, love the excellent school system here. New construction in the Westfield luxury home market continues to thrive. One aspect of the home buying process that Buyers often forget about are the closing costs. However, there are things you can do to keep these costs to a minimum. Read on to learn how to reduce your closing costs when buying your next Westfield home.
How to Reduce Your Closing Costs
Closing costs consist of loan origination fees, title insurance, underwriting fees, title search fees, appraisal fees, surveys and discount points among other fees. These costs must be paid at the close of your Westfield home’s sale. And, these costs are completely separate from your down payment. They typically total in the thousands. Luckily, there are a few ways you can reduce these costs.
Close at the End of the Month
One of the easiest ways to reduce your closing costs is by scheduling to close at the end of the month. Why does this matter? It saves you money on any prorated costs, such as taxes, interest and HOA fees. The less time until the end of the month means that there are less days that need to be prorated before your first payment is due. This sounds small but can easily save you hundreds if not thousands of dollars in closing costs.
Ask the Seller to Pay
It’s just that easy. Most loans allow the Seller to grant as much as 6% of the sale price of their Westfield home towards the Buyer’s closing costs. In turn, they receive a tax deduction. You pay less out-of-pocket expenses to own your new home. Keep in mind that, in order for this to be enticing to the Seller, you might have to pay list price or close to it.
Bank Loyalty Programs
Are you getting your mortgage loan through your regular bank? Some banks offer loyalty programs to their customers. Talk to a representative to see if they offer reduced fees or any closing cost credits. Either of these help reduce your closing costs overall.
Military or Union Member Benefits
Finally, are you a former or current member of the military? Do you belong to a union? You may be entitled to benefits that help reduce your closing costs. For example, a VA loan restricts what closing costs the veteran has to pay. Military.com provides information on different types of loans and programs available to military members on their website. Many unions offer programs to assist with home buying as well. Talk to your union rep for more information.
Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes