Closing costs can add up quickly. Between recurring costs like mortgage insurance and non-recurring costs like lender fees, closing costs can end up setting you back just as you’re about to move into your new home. Luckily, there are several ways to reduce closing costs with your Kansas City mortgage company before your closing date arrives.
Not every Kansas City mortgage company gives the same rates or closing costs. There are several documents loan officers are required to provide when you apply for a loan that outline the approximate closing costs to expect, including:
These documents should give you some indication of rates while selecting for the best Kansas City mortgage company for you.
Some negotiation is possible when discussing closing costs with your loan officer or other loan official. However, you should negotiate these costs before a contract is drawn up. This is the easy and respectful way to ensure your closing costs are affordable.
Lender credit essentially allows you to increase your mortgage rate in favor of lower closing costs. This method may save you from paying more cash up front, but depending on the interest rate you may end up paying more over the course of your loan.
If you are purchasing a home from a seller, it’s possible to get a contribution from the seller. These contributions cannot be applied to down payments or end up as extraneous funds for you; they can only be applied to closing costs. Seller contributions will most likely lead to a higher price on your contract and loan, but your closing costs will be lower. Therefore, if you don’t have the money immediately, it may help to lower your closing cost, but you’ll spend more money in the long run.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
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