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There are many things to think about when it comes to making the decision to purchase a home. Not only does buy a house take a lot of time and thought, but you’ll also need to have a significant chunk of money to put down.

One of the biggest expenses many people don’t think about when it comes to buying a house is the closing costs. Closing costs are fees paid after a real estate transaction has been made, when the property is handed over to the buyer. Closing costs are typically around 5% of a home’s purchase price, meaning you’ll need to factor that amount into your budget.

Thankfully, there are a few ways to reduce closing costs and make them more manageable. Here are a few!

Shop around for the best deal

Just like with any major purchase, it is important that you shop around and look for the best quote before making a decision. One way to reduce closing costs is by checking out a few different lenders and comparing prices. Many lenders are willing to price match to meet another lender’s lower cost, as they still want your business regardless. You can also use a seller closing costs calculator to determine how much you should be spending on closing costs, and present that number to lenders.

Negotiate with the seller

Another way to try to reduce closing costs is by negotiating with the seller to lower the cost of the home. Depending on whether or not a seller is willing to work with you, you may be able to get them to lower the overall price of the home in order to offset the expense of the closing costs. In some lucky cases, the seller may even be willing to cover some or all of the closing costs, so don’t be afraid to negotiate until you get the price you want!

Consider a No-Closing Cost Mortgage

Something that many people opt for when trying to reduce closing costs is by taking out a No-Closing Cost Mortgage. These types of mortgages allow buyers to roll their closing costs into their mortgage, rather than have to pay it all upfront. A No-Closing Cost Mortgage can be a great option for anyone who isn’t sure how long they plan on staying at a particular property, but may not be ideal for people looking to live there long-term. The reason for this is because No-Closing Cost Mortgages may end up costing you more money in the long run, so if you plan on staying at the property for more than 5 years, it may be in your best interest to just pay the closing costs upfront if you are able to afford it.