Tips for Reducing Closing Costs

For anyone with experience in the real estate industry, the term “closing costs” stir up negative emotions. These costs are paid at the closing of any real estate transaction, and they can often sneak up on you during or after the home loan process.

At American Loans & Mortgages, one of the primary perks of our low-credit home loans is a zero down closing cost program that eliminates hidden costs and any money upfront. For people looking at different loans, here are a few tips for avoiding or limiting your closing costs.

End of the Month

Every day — from the day you close your deal until the end of that month — you’ll be charged a per diem interest rate. To make the amount as small as possible, structure things to close at the end of the month, so you’re only paying one or two days of interest.

Loyalty Programs

Many banks and lenders offer closing costs assistance when you use their institution for financing. Be sure to check into what kind of programs they offer so you can fully take advantage of their deals.

Military Service

You’re not going to join the military on a whim just to avoid closing costs, but active and former military members have closing-cost benefits that leave many who qualify unware. There are advantages specifically for closing costs that are independent of VA loan benefits. If you’re a service member, make sure you know which benefits you’re eligible for. You deserve them.

Include Closing Costs in Loan

If you aren’t receiving any outside assistance from one of these programs, simply rolling the closing cost amount into your home mortgage may be a good option. You’re already borrowing a large amount, and including these fees helps avoid the hassle of putting down a sizable amount of money right from the start.

If you’re interested in learning more about this or any other element of our mortgage service, we’re standing by to assist you. Call the American Loans & Mortgages experts today at (801) 269-0900.