A Few Ways To Keep From Having To Come Up With The Fees Associated With A Real Estate Closing

A real estate closing is the actual signing of papers and transfer of the property between seller and buyer. In addition, there are fees that will need to be paid for the work done to make the transfer possible. These fees include paying for a title search, paperwork to process the loan, a survey, home inspections and other miscellaneous tasks. Once all these fees are considered, you may need to come up with an extra 2 to 5 percent of the purchase price. Here are a few tips that may help if you are having trouble coming up with this extra money on top of paying the down payment.

Ask the Seller to Pay

Sometimes the seller may be willing to pay for the majority or even all of the closing costs. If you and the seller have been on good terms and are not arguing over who should pay for small problems found in any inspections, you can ask him or her for help paying the closing costs. This is something you can consider when you first make an offer on the property. If you did not have it written in the initial offer, have the real estate agent write an addition to the contract asking for help with closing costs.

Ask the Real Estate Agent for Help

A portion of the sale price goes to the real estate agents and brokers involved in the deal. If you are having trouble coming up with closing costs, you can ask them to lower their fees a bit, for example earning 2 percent commission instead of 3 percent. They may be willing to take a cut in their share to have the deal closed. The amount you save can then be used toward closing costs.

Roll the Fees into the Mortgage

If the loan amount is does not max out the loan-to-value ratio, and you qualify for a slightly larger loan, you can have the bank add the closing costs to your mortgage. While this will mean you have a higher monthly payment, if you cannot come up with closing costs any other way it will allow you to buy the property.

Closing costs are real, and can be a large amount of cash you need to produce all at once. If you cannot pay them, the deal will not go through and you will not be able to buy the property. Keep in touch with the lender to keep updated with how much money you need to settle the deal. If it is looking like it will be more than you can afford, start looking around for help immediately. Don't lose the house of your dreams because of closing costs.

Contact a professional like Byron Huffman, PC for more assistance.