The amount of stress a prospective homeowner might face when buying a home can vary greatly depending on how prepared they are. There are so many different things to consider. From getting your loan to having the home appraised to getting homeowners insurance—the exhausting processes can drain you both mentally and financially.

At Atlas Crown Mortgage, we understand that the last thing you want to think about when you finally close are FHA loan closing costs.

We have over 25 years of experience helping our clients in Phoenix and Scottsdale find the best mortgage rates. Our goal is to help you get into your dream home, that’s why we compiled this list of a few precautionary steps that can save you a lot of stress.

Here are a few things you can do to prepare for the closing cost on your FHA loan.

What are FHA loan closing costs?

FHA loan closing costs are the fees all home buyers have to pay on the day they close. They can vary depending on the type of mortgage you have.

FHA loans can have lower down payments, lower closing costs, and are more accessible to a variety of credit scores. Closing costs typically range from 2-6% of the home’s purchase price.

Things you can do to lower your cost

Start by comparing lender fees. When you are shopping for a mortgage, be sure to ask them for their fees. This way you can include this knowledge in your final decision or use it to negotiate with your preferred lender.

You can also ask if your lender would roll the closing costs into your loan. This means you won’t pay for the entire sum up front, making it easier for you to afford.

Finally, while negotiating the deal, ask your real estate agent if the seller might be willing to pay some of the closing costs. The effectiveness of this strategy will depend on the state of the housing market, but you can always consult with your agent to be sure you're making the right decision.

4 ways to prepare for your FHA loan closing costs

Here are some general guidelines for preparing for closing costs. While none of these are required, they could help make the process easier for you.

1. Save in advance

When saving for your down payment, you should also consider including your closing costs. This could save you a considerable amount of stress when it comes time to pay them.

2. Improve your credit score

Having a higher credit score could make it more likely that your seller or lender will negotiate with you on the closing costs. You can lower your credit score by paying off your debts and developing a habit of paying your bills on time.

3. Negotiate (with your lender and your seller)

Depending on the housing market, your seller could potentially pay up to 6% of your closing costs for you. Consult with your lender and real estate agent to see what options are available to you.

Be Prepared for FHA Loan Closing Costs

Purchasing a home doesn’t have to be so stressful. With the right preparation and assistance, it can be a streamlined and efficient process.

If you’re looking for a dependable mortgage broker in Phoenix and Scottsdale, AZ, contact Atlas Crown Mortgage to schedule an appointment. With over 25 years of experience providing clients with excellent service, we’re here to help you find the best mortgage rate for your dream home.