Helena Talbot's blog - Minimizing Closing Costs

Closing costs are one of the least understood aspects of the home buying process. Most home buyers have a vague notion when they buy a home that there will be additional costs besides the down payment, but nearly every buyer is shocked when they see the first estimate of the total cash they will need at their closing. You become so busy negotiating the price of the home that homebuyers forget about one of the biggest expenses involved.

Out-of-pocket costs are the hardest costs to reduce but just about every expense can be negotiated;

1.Escrow and Title fees are negotiable. Homebuyers can choose a preferred Title Company; do some research based on reputation and costs.  Most seasoned Realtors have clout with certain companies and they can negotiate these fees down to save a deal.

2.Appraisal fees can be financed in the property or completely erased.  Compare mortgage companies and their fees; look for one that does not charge up front appraisal fees or simply negotiate with the lender.  This fee can be a few hundred dollars.  All can be negotiated including the amount of the credit report.

3.Points on the loan can be purchased.  A point is equal to one percent of the mortgage loan amount and is actually pre-paid interest that helps reduce your interest rate. A zero point loan will only cost a few dollars more a month and will eliminate having to outlay thousands of dollars up front.  Most home buyers will resell the home in a few years and the money spent on the monthly payment will greatly outweigh what is saved.

4.PMI (Private Mortgage Insurance) is not necessary when the buyer puts 20% down on the loan.  If there is PMI there are upfront reserves which can be in the thousands of dollars.  Take a loan with no PMI and pay a slightly higher payment, which will end up costing less in the long run.

5.Pay 20% down on a loan and avoid tax and insurance compounds in escrow.  It is easier to pay for the taxes as they come due, opposed to paying several months of upfront tax proceeds right now.

6.Another part of pre-paid items that can be reduced to zero is pre-paid interest. Because all mortgage loans are due on the first of the month, you will have to pay interest from the day you close until the end of the month. By closing on the last day of the month, you will have no pre-paid interest due and can save hundreds of dollars.

With these simple guidelines, the buyer can seller can both save money on closing.

I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia. 

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800   www.facebook.com/LoudounCountyConnect  www.twitter.com/ExitAshburn  www.Linkedin.com/in/HelenaTalbot