How To Save On Closing Costs

When someone goes to buy a house, they usually start by wondering how much money they’ll need for the down payment. Then, the focus shifts to credit scores and whether theirs is high enough to qualify for a loan. After that, the big question becomes: “Can I actually afford the monthly mortgage payment?” But what many buyers overlook—until the final stretch—is closing costs. These can add thousands of dollars to your upfront expenses. The good news? There are a few smart ways to save.

1. Shop Around for Home Insurance

Homeowners insurance is a required part of getting a mortgage, but rates can vary drastically between providers. Don’t just go with the first quote—get several and compare not just the premiums but also the coverage. Saving even a few hundred dollars a year on insurance can lower your upfront escrow requirements and make a real dent in your closing costs.

2. Work With a Great Realtor Who Can Negotiate Seller Credits

An experienced real estate agent can be a huge asset when it comes to reducing your out-of-pocket expenses. One of the best ways they do this is by negotiating seller credits—money the seller agrees to put toward your closing costs. This can significantly cut down what you need to bring to the table at closing.

3. Ask About Lender Credits

Your mortgage lender might offer credits in exchange for choosing a slightly higher interest rate. These “lender credits” can be applied directly to your closing costs. It’s a give-and-take—you’ll pay a bit more over time on your monthly mortgage, but it can help you save upfront when every dollar counts.

Final Thought

Buying a home is a big investment, but that doesn’t mean you have to overpay at closing. By shopping smart, working with the right professionals, and knowing what to ask for, you can hold onto more of your hard-earned money.