So you've found the perfect house and now it's time to close on your home loan. Before you can get the keys to your new house, you'll first have to pay closing costs. Closing costs are fees that you must pay to complete your mortgage loan and get into your new home. Closing costs generally consist of fees for such things as appraisals, credit reports, and title searches. Generally closing costs start at around $2,000 and go up depending on the size of your loan. However, there are ways to buy a house without having to pay closing costs.
Ask the seller to pay all of your closing costs. This is a great bargaining tool to use when purchasing a home. Typically sellers will not mind paying closing costs if they want to quickly sell their home.
Contact local banks and mortgage lenders and ask if they have no-closing-cost loans. Some lenders will provide mortgage loans having no closing costs. Be sure to ask the lender what the difference would be in obtaining a no-closing-cost loan versus a loan with closing costs so that you can make an appropriate decision as to whether this would be the right choice for you.
Contact your local U.S. Department of Housing and Urban Development (HUD) office and ask them about closing cost assistance programs they have. They will be able to tell you information about various assistance programs in your state that will pay your closing costs. Typically, to participate in these programs you must meet certain eligibility requirements, such as income and credit criteria.