Should You Really Pay Closing Costs as a Buyer?

Ah, we arrive again at buying a home. It’s a pretty big decision, so it makes sense to research just about every angle of the transaction as it comes to light. You might think that you’re actually pretty prepared — after all, you have the down payment, and you’ve found that the mortgage will fit into your budget. Does it mean that you have nothing else to think about? Absolutely not!

For example, you really need to think about the closing costs involved with purchasing a place. The closing costs are the list of expenses that buyers will need to pay at the time of the sale. There’s a long list of expenses, and if you’re not prepared for them they can really sneak up on you. The last thing that you want to do is finally go through all of the different stages of buying a home to get stalled out at closing. It’s a seller’s nightmare too, because they’re hoping that the closing goes as smoothly as possible. When you’re thinking about purchasing a house, you have to remember that the seller is hoping that you will be able to make the house a home very, very soon — which is a good thing, because this opens the field for negotiation.

Negotiation? Of course — you will be able to negotiate a bit more as long as you’re really willing to think about all angles of the problem. At the core of every transaction is a buyer and a seller, right? So if there’s any snags in the process, they need to be closed quickly.

Now, you might be able to get the seller to finance some of the closing costs for you — that can be put out in the purchase agreement. If the seller really wants to make sure that they are going to get the closing underway, they might do this for you. However, what you can also do is roll the closing costs into the loan.

Now, the best way to go about this is if you haven’t used your maximum loan limit on the house itself. If you have some wiggle room, you can indeed just add the closing costs to the loan itself. However, you have to realize that this is going to require more money on your monthly payments and plan accordingly — that’s the best way to go, if you’re going to go down this road.