Along with your down payment, interest rates and mortgage premiums, you need to think about the closing costs of your mortgage.
The closing costs for mortgage include several different fees, such as:
• The loan origination fee
• The appraisal fee
• The cost to pull your credit report
• Discount points
• Attorney fees
• … And more
For most types of loans, you can expect your closing costs to range between 2% and 5%.
How expensive that is depends on the cost of the home you are buying. But even with a relatively inexpensive property, closing costs can add up to a significant amount of money.
In fact, just as a down payment can stand in the way of purchasing a home for those without a lot of upfront cash, the same is true of closing costs.
So, what can you do to keep your closing costs to a minimum?
1. Raise your credit score.
The lower your credit score is, the higher your closing costs are likely to be, and vice versa.
So, doing what you can to boost your score before you fill out your loan application can not only potentially qualify you for a lower down payment and reduced interest rates, but lower closing costs as well.
If you need recommendations for how you can improve your credit score, we can point you in the right direction during your consultation.
2. Shop a network of lenders (with our help).
If you try to go through just one direct lender, you might not find the lowest closing costs available given your borrower profile.
For that reason, it is a good idea to get closing cost estimates from a variety of lenders.
The fastest and easiest way to do that is with our help. As a Seattle mortgage broker, Blue Square Mortgage works with numerous lenders throughout the state to bring competitive closing costs to customers shopping for a home in Seattle or elsewhere in Washington state.
3. See if you qualify for a loan where the closing costs are lower.
There are some tests of mortgages which carry lower closing costs on average, and which permit a larger solar contribution.
For example, if you apply for a FHA or VA mortgage, your closing costs will probably be somewhere from 1% to 3%.
4. Negotiate down your costs.
Closing costs for Washington State mortgages are not necessarily set in stone.
Many homebuyers do not realize that lenders often are open to negotiation concerning some of the specific fees included in the closing costs.
If you ask for an itemized list of your closing costs, you can see exactly what fees are included.
You might be able to get some of those fees waived entirely. When you choose us as your mortgage broker, we can work with your lender on your behalf to minimize your closing fees.
Apply for a Mortgage in Seattle Now with Low Closing Costs
While some borrowers assume the closing costs are nonnegotiable there are a number of ways that you can potentially save hundreds or thousands of dollars by reducing your closing costs.
At Blue Square Mortgage, we know that it is common for homebuyers to have difficulties affording your closing costs. As such, we prioritize getting your closing costs as low as possible regardless of the type of loan that you select.
If you are ready to apply for a competitive mortgage in Seattle or elsewhere in Washington state with low closing costs, please give us a call now at (206) 352-6453. We look forward to meeting you during your consultation.