When investing in a new property, it’s important to make the most out of the transaction to ensure as successful an investment as possible. Investing in a new property requires multiple upfront costs, such as down payments, fees, and renovation costs.
There are ways to lower closing costs in a new investment property, and Stoner Law Offices, LLC. real estate lawyers recommend you hire an attorney who will support you each step of the way. Knowing what kind of property to invest in is important, especially when trying to save on closing costs. Real estate attorneys understand that real estate is a great way to invest your money and are happy to provide counsel before you make any decisions.
Ways to Reduce Your Closing Costs
Seek Support While Closing
Asking for help when investing in a new property might not be the first thought that comes to your mind. But when it comes to lowering closing costs, sometimes a seller is inclined to help with closing costs.
The best way to ensure a quick sale is to work together for a smooth transaction. With a seller and buyer working together, you can both win – the house can sell for the asking price, and closing costs can be financed in the process.
It’s also a good idea to reach out to a real estate lawyer or investment counselor to work with you on the closing. Because they will have extensive experience in these matters, they will be capable of researching every minute detail of a property, thus saving you time and money.
If you’re a first-time investor, this is a great way to thoroughly plan and research ahead of time, helping you save on closing costs without any stress.
Shop Around When Investing
If you are looking to invest in a new property, it’s a good idea to take your time before selecting a property to purchase. Research is extremely important when you are considering buying real estate. It’s good to know that a property is not a bad investment, even if it needs fixing up; there are ways to remodel without breaking the bank.
Consider these costs when shopping around for an investment property since fees differ by lender. Be sure to ask for closing cost estimates while shopping around, as few mortgage lenders assist with the closing costs.
You can also ask a lender to find and match low closing costs that are offered elsewhere. Don’t be afraid to seek out lower-cost services by evaluating your options – if anything is optional and you feel you don’t need it, opt out!
Time Your Closing Strategically
You can save money on closing costs simply by scheduling the closing at the very end of the month. If you have taken out a loan already to purchase your new investment property, interest will need to be paid on the loan starting on the settlement day.
A part of your closing costs will include the total amount of interest accrued between your first mortgage payment and the closing – so if your payment date is on the first of the month, the amount accrued will be less the closer your settlement day is to the very end of the month. This is a simple way that anyone can lower closing costs on a new investment property.