When buying a house for the first time, you may not realize how much the closing costs add to the overall amount that you have to pay to obtain the property. The costs are typically two to five percent of the purchase price of the property and often cover attorney fees, taxes, and surveys. Fortunately, there are a few ways that you can save money on the costs when closing.

Negotiate with the Lender

When working out the details of your new mortgage, you can negotiate with the lender to obtain lower fees. Request that obscure fees are knocked off of the final price tag. The lender can provide you with a Closing Disclosure form, which lists all of the details of the costs. Review what's listed on the form with the Loan Estimate and ask the lender to explain any discrepancies.

Delay the Closing

Many buyers are unaware that they can save more money by pushing back the closing date. By delaying the closing, you can minimize any charges associated with pre-paid daily insurance. Opt for closing at the end of the month to avoid paying more. Schedule the closing after researching when you can pay less upfront.

Skip the Appraisal

You can skip the appraisal if the home has already been appraised recently. The lender will provide you with an appraisal waiver, which can allow you to spend less on an automated appraisal instead of paying more for a full appraisal. You can also request a re-issue rate and re-up your title insurance for a refinance.

Review the Loan Estimate

Make it a point to carefully review the loan estimate that you receive and discuss each item with your lender. Ask what each fee covers and the reasoning behind the cost, which can help you to avoid unnecessary fees. There may also be fees present that have a similar name such as processing fees and underwriting fees. Although the Loan Estimate replaced the GFE, it's still important to go over everything to avoid spending more.

Shop for Title and Settlement Services

You'll need to act quickly when shopping for title and settlement services because the firms require a lot of time to research and prepare all of the documents. Online marketplaces are available to help you generate competing quotes.

Ask the Seller to Contribute

One of the contingencies that you can include in the offer that you make on a property is that the seller has to contribute to the closing costs. Although the costs can be folded into the loan, the seller can still pitch in to lower what you pay on your monthly mortgage payment. Additionally, a no-closing costs mortgage is useful if you have a strict budget or are tight on cash.

Understanding different tactics to lower your costs when closing can allow you to potentially save thousands of dollars. By doing a bit of homework and research, it can be worth lowering the fees that you pay.