When you make the decision to buy a house, you’re making a huge investment in your future. However, becoming first-time homeowners involves more than just finding a house you can afford. You also have to make sure you can pay the closing costs on the home you buy. Unfortunately, those costs can add up to hundreds or even thousands of dollars if you’re not careful. Luckily, there are closing cost assistance programs that can help you pay for those unexpected fees.
It All Comes Down to Your Income Level
Closing cost assistance programs are designed to help low-income buyers become first-time homeowners without undue financial strain. They’re often bundled with state-sponsored assistance programs that help you finance both the house and your down payment for the house. If you qualify for those down payment assistance programs and low-income home buying loans, you’ll likely qualify for closing cost assistance.
You’ll Still Have to Pay Some of the Fees
Unfortunately, there’s no way to completely waive closing costs for first-time homeowners. You’re going to have to pay at least some portion of those fees on your own. That said, you may be able to negotiate some of the fees with the seller depending on the market. If homes aren’t selling quickly, sellers will likely be more willing to help you get into the house. Keep in mind that getting sellers to cover those fees in a market that’s in high demand won’t be easy. They’ll be more likely to choose a buyer that offers to cover their fees.
Choose the Right Loan Type
Ultimately, the amount of money you’ll pay in closing costs will vary based on the type of loan you apply for. Be picky and explore your options to make sure you’re getting the best deal possible. If you’re a qualified veteran, a VA loan will save you money on closing costs. If you’re buying a house in a rural area, a USDA loan may offer you better savings. The only way for first-time homeowners to find out how much they’ll owe is to shop around and speak with loan consultants about the best options for their budgets.
Buying a Home Without High Closing Costs Is Possible
Though all first-time homeowners will have to pay some closing costs, there are programs in place to help you keep them as low as possible. You’ll just need to take the time to speak with a mortgage expert. Contact us today to learn more about your options.
