Reducing Your Cash to Close: Tips from Real Estate Agents

Your offer has been accepted, your loan is approved, and you’re on your way to owning your new home! The last step before getting the keys is bringing your cash to close on closing day.

This amount includes your down payment and closing costs, which typically range from 2% to 5% of the home’s purchase price. For example, if you’re buying a $300,000 house, you may need an additional $6,000–$15,000 beyond your down payment.

The good news? There are several ways to lower your upfront costs and make homeownership more affordable. A knowledgeable real estate agent can help you explore all your options so you can save money and move into your new home with confidence. Here are some practical ways to reduce your cash to close.

1. Comparison Shop for Services with the Help of Your Agent

When your lender issues your Loan Estimate, look closely at the section labeled “Services You Can Shop For.” This includes things like title insurance, pest inspections, and survey fees.

You’re not required to use the vendors listed on the estimate. You can compare prices from other providers to find better rates. Your real estate agent can help you identify trusted local professionals who provide quality services at fair prices.

2. Let a Skilled Agent Negotiate Seller Concessions

In some cases, you can negotiate for the seller to cover part (or even all) of your closing costs. These are called seller concessions, and they’re a great way to reduce the amount you need to bring to closing.

Every situation is different, and what’s possible depends on your loan type and how competitive the offer needs to be. Your real estate agent can help you explore your options and structure an offer that strengthens your position without pushing you beyond your budget.

3. Explore Lender Credits to Reduce What You Pay at Closing

Some lenders offer what’s called lender credits, which allow you to pay less upfront by agreeing to a slightly higher interest rate on your loan. In return, the lender helps cover part of your closing costs. This can be a smart option if you’re short on cash now and plan to refinance or sell within a few years.

4. Reduce Cash to Close With Down Payment Assistance Programs

There are many down payment assistance and grant programs available through federal, state, and local organizations, especially for first-time homebuyers or those who meet certain income or location requirements.

An experienced real estate professional can point you toward programs that may apply to you and connect you with lenders familiar with these options. Taking advantage of assistance can significantly lower your out-of-pocket costs and make it easier to move forward with your purchase.

5. Save on Prepaid Interest by Closing at the End of the Month

Here’s a simple but effective tip: schedule your home closing near the end of the month. This reduces the amount of prepaid interest you’ll owe, which covers the time between closing and your first mortgage payment.

By shortening that window, you can save a few hundred dollars and every little bit helps when you’re budgeting for a move.

Real Estate Agents Help You Make the Most of Your Homebuying Budget

Buying a home is one of the biggest financial decisions you’ll ever make. By understanding your options and planning ahead, you can reduce your cash to close, minimize stress, and feel confident on closing day.

If you’re preparing to buy or just beginning your search, connect with a knowledgeable real estate agent. The right agent will guide you through each step, introduce you to trusted lenders and service providers, and help you find a home that fits both your lifestyle and your budget.