Know Your Options: Strategies for Closing Costs

Know Your Options: Strategies for Closing Costs

  • Jon Bibbs, ABR®, SRS®
  • 01/30/23

The need for cash at closing can make purchasing seem unapproachable. But, there are options to help you cover your closing bill.


Closing costs are fees associated with the purchase or refinance of a property that are paid at the closing of the transaction. They can add up to thousands of dollars and can be a significant burden for homebuyers. It pays to know there are several strategies you can employ to help lighten the financial load at the closing table. Here are some strategies for paying closing costs:

  1. Negotiate with the seller: Ask the seller to pay some or all of the closing costs as part of the sale. This can be a win-win for both parties as the buyer reduces their out-of-pocket expenses and the seller may be able to sell their property faster.

  2. Utilize lender credits: Some lenders offer credits to offset closing costs in exchange for a higher interest rate. This option is best for buyers who plan to stay in their home for a long time.

  3. Look for grants or assistance programs: There may be local, state, or federal grants or assistance programs available for homebuyers. Check with the Department of Housing and Urban Development (HUD) or your local housing authority for more information.

  4. Roll the costs into the mortgage: It’s possible to finance the closing costs into the mortgage by increasing the loan amount. This option will result in a higher monthly mortgage payment, but it allows the buyer to avoid paying the costs upfront.

  5. Save in advance: Start saving as early as possible to cover the closing costs. Consider setting aside a portion of your monthly income to build up your savings.

In conclusion, paying closing costs can be a challenge, but there are several strategies to help ease the burden. It's important to understand all the options available and choose the one that's best for your individual financial situation. Work with a trusted CSG real estate advisor to help navigate the process.

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