If you’re like many people looking at the top pet-friendly condos in Boca Raton, you know that you’ll have to pay closing costs when you buy – but is there a way to reduce them and keep some of your hard-earned cash in your pocket?
Here’s what you need to know.
5 Ways to Reduce Your Closing Costs When You Buy a Pet-Friendly Condo in Boca Raton
There are a few ways that you may be able to reduce your closing costs when you buy a pet-friendly condo in Boca Raton, Highland Beach or anywhere else. Nobody wants to spend money they don’t have to spend, so you may be able to:
- Ask the seller to pay
- Look for loyalty programs
- Close at the end of the month
- Roll your closing costs into your mortgage loan
- Use a VA loan benefit
Here’s a closer look at each.
Related: How much are closing costs?
Tip #1 to Reduce Your Closing Costs: Ask the Seller to Pay
You’re free to ask the seller to pay some or all of your closing costs. In fact, some sellers expect you to ask them to pay – and that’s normal. That doesn’t mean you call the seller yourself, though; your real estate agent will call the seller’s agent and discuss what the seller is willing to pay for. In many cases, sellers are eager to seal the deal, and they may even offer to pay all your closing costs.
Tip #2 to Reduce Your Closing Costs: Look for Loyalty Programs
Many banks offer loyalty programs when you borrow money to buy a home. If you’re taking out a mortgage through the institution you normally bank with, ask your rep if there are any programs that can help you save – or if there are discounts on underwriting fees or reduced origination fees.
Related: How to downsize your home without giving up the things you love
Tip #3 to Reduce Your Closing Costs: Close at the End of the Month
When you buy a home, part of your closing costs include per diem interest for the rest of the month. If you close at the beginning of the month, that means you have to come up with the cash to pay the per diem interest for the rest of the month – but if you close at the end, you have to come up with less. For example, if you close on the 28th, you generally only have to pay for two or three days of per diem interest. (Contrast that to closing on the first day of the month, when you essentially have to pay for the whole month at closing.)
Tip #4 to Reduce Your Closing Costs: Roll Your Closing Costs Into Your Mortgage Loan
It’s sometimes possible to roll closing costs into the total mortgage loan. That may mean you save a few thousand dollars now in exchange for increasing your monthly mortgage payment by a few dollars. You should ask your lender if that’s possible in your situation, and then ask to see the numbers; it may be worthwhile.
Related: Steps to buying a home in Florida
Tip #5 to Reduce Your Closing Costs: Use a VA Loan Benefit
If you’re entitled to a VA loan benefit because you served in the U.S. Armed Forces or are a qualifying dependent, there’s a limit on how much you can be charged for closing costs.
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