Closing costs are typically more than buyers expect. Closing costs will average 3-4% of the sale price of a home, and with some changes in policy expected towards reserve requirements, that figure could increase by 1-2%. However, there are some things that may save the buyer some money. Negotiate with the seller to pay some of the closing costs. Try and get a zero point loan. The rate will be higher but less cash will be necessary. Get a no-fee loan. Usually the fees will be put into a higher interest rate on the loan. Try shopping around for the best loan. The end result will be the buyer paying more cash at the closing or more money over the course of the loan. The choice will ultimately be up to the buyer and to the lender and seller if they agree to any adjustments in loan rate or closing cost contributions.
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