When you decide to buy a new construction home, you may believe you have your budget all worked out — right up until the point when you look on page two of your loan estimate and notice the line that tells you your closing costs. These fees, which include things like title searches, applicable taxes, and recording fees, can sometimes amount to 2-4 percent of your purchase price! The good news is, when you work with a builder like Lowder New Homes, you can often avoid these closing costs. Here are a few ways you can do just that.
Negotiate with the lender
One way to offset the closing costs is to find ways to cut other costs to match them. For one thing, depending on your mortgage broker or lender, you might be able to negotiate with them to reduce or waive the lending fees. Bear in mind that making a move like this might result in a higher interest rate, but it can be done.
Arrange for your own title search/insurance
You’ll have to work with a title company to make sure there are no problems with the title on the land — but that doesn’t mean every title company charges the same amount for these services. In fact, some title companies charge much less than others. Rather than leave this decision to the lenders who typically use the same title companies, regardless of price, do some research, find a lower cost title company and ask the lender to work with that company instead. You may be able to reduce your closing costs significantly with this move.
Cut back on a few extras
Another way to recoup your closing costs is to look over your housing plans with the builder and look for ways to cut back on a few of the options. You can save a few hundred dollars here and there just by choosing slightly cheaper knobs for the cabinetry, or declining the highest priced appliances. Make a few of these changes, and you can recover the equivalent of your closing costs without reducing the overall quality of your new construction home.
Negotiate directly with the builder
Some builders, Lowder New Homes included, offer special incentives to attract home buyers, and they will commonly cover the closing costs as part of those incentives just for the asking. If the builder doesn’t mention this incentive, ask for it! The worst they can do is say no, and if you don’t like their answer, you can even find a builder who will.
At Lowder New Homes, we offer several special packages for our customers, including one that waives your closing costs completely! Call us today for details at 334-270-6789.