All Forum Posts by: Garrett Karnath

Hi! My wife and I are officially under contract with a new primary residence, with the goal of moving and then turning our current home into a rental. What are some things I can do after going under contract to lower closing fees? I have already shopped insurance, and the sellers are providing $5k towards prepaids/closing costs.

After contract is more challenging as your best negotiation is before contract. As mentioned seller credits are the best path as title insurance and taxes are pretty much fixed. Property insurance is something you can also shop around as well.

Thanks! I will look into the sellers credits, and I was able to trim down homeowners insurance as well.

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Quote from @Jason Wray:

Garrett,

If you are talking about reducing closing costs including the banks side you can ask the sellers for a "Seller credit" which they can offer up to 6%. That can be used to buy down the mortgage rate or reduce closing costs. Make sure you are using an FDIC Fullly Delegated Bank. That way you avoid using a lender and do not have to pay lender or loan officer points.

Ponts can be built into your rate as well so compare notes with more than one lender/bank. You can also ask the title company to offeer a "lean Fee Sheet" meaning "Cut the fat" and reduce the BS fee's.

Great! Thanks, I will look into the sellers credits and points, as well as the lean-fee sheet with the title company as well. Shopping insurance helped a bunch, I was able to cut out ~$500 on that alone.

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All Forum Posts by: Garrett Karnath

Garrett Karnath has started 1 posts and replied 3 times.

Post: How to reduce prepaids/closing costs?

Post: How to reduce prepaids/closing costs?

Post: How to reduce prepaids/closing costs?