How to Buy a House With No Closing Costs
Purchasing a home can often be a complicated, multi-faceted and costly endeavor, but it is also one of the most significant investments people can make in their lifetime. In addition to the down payment and mortgage payments, part of the overall cost of buying a house will often involve closing costs.
Closing costs are a collection of fees paid at the end of the home buying process that cover a variety of things, such as credit reports and appraisals, and are generally at least $2,000. Though these costs are common, it is possible to complete the purchase of your home without having to pay closing costs.
- Ask the sellers if they are willing to pay for the closing costs as a part of your purchase agreement. This is a common and effective bargaining tool during the negotiation process. Most likely, if the sellers are highly motivated to sell their home quickly, they will be willing to cover the closing costs in order to finalize the deal.
- Ask your mortgage lender if it offers a no closing cost loan option. Make sure you compare the details of the home loan with and without closing costs, so you can determine whether or not a no closing cost loan is right for you.
- Contact your United States Department of Housing and Urban Development office (HUD) to inquire about any closing cost assistance programs it may offer. These housing aid programs do require that your particular income and credit situation meets certain eligibility requirements.