When you buy a new home, it is important to consider the closing costs required to go under contract and take ownership of the property. These costs could include things like loan origination fees from your lender, title insurance, appraisal fees, property taxes, and other administrative expenses. Typically, they range from 2% to 5% of the home's purchase price, depending on your location and specific situation. At NHC, however, our lowest prices per square foot can lower these costs significantly, but spoiler alert—you might not need to worry about them at all, which we’ll get into a little later.

So, who pays closing costs on a newly constructed home such as NHC’s? Is it always the home buyer? The answer might surprise you. Let’s discuss.

Who Pays Closing Costs on Newly Constructed Homes?

Ready to settle this once and for all? While home buyers are typically responsible for paying closing costs, certain builders like NHC may help prospective buyers pay closing costs when they finance with partner lenders, such as NHC Mortgage. What does that mean for you? It means your down payment goes significantly further, allowing you to buy more equity in your property upfront.

For example, let’s say you find one of NHC’s affordable homes in Texas. You lock in the lowest price per square foot on the market for your newly constructed home and are deciding what to put down. Well, in this case of builders paying closing costs, you could up your down payment thanks to the financial assistance we could provide.

In other cases, the home buyer is typically responsible for paying the closing costs on a newly constructed home in full. On a $200,000 home, these fees could range anywhere from $4,000-$10,000 on top of the downpayment. That’s why it’s important to partner with a home builder like NHC that offers affordable houses at prices that won’t break the bank. The more you save on your home, the more you could save in closing costs on the newly constructed home.

Can You Negotiate Closing Costs on New Construction Homes?

A common misconception is that closing costs are set in stone. This isn’t actually the case. Most homebuyers can reduce their closing costs through a number of strategies, one being to secure lending from a home builder’s partner. NHC Mortgage helps homebuyers take the worry and stress out of securing a loan. Plus, when you finance your affordable NHC home through NHC Mortgage, you’ll enjoy several perks, including a deposit of ONLY $95. Don’t miss out on your chance to secure a slice of the American Dream at a cost you can truly afford. Explore our available homes today.

Pro Tip #1: Seek Concessions from Sellers

Especially if you’re in a buyer’s market, which is often, it is smart to see if the seller of your desired home is willing to negotiate on closing costs. In some cases, you may be able to agree on a deal that sees the seller pay some of the closing costs. In a seller’s market, however, this strategy may not work, as they will have more leverage.

Pro Tip #2: Explore Your Lending Options

Some closing costs, like title insurance and the home appraisal, can vary depending on the lender. In other cases, you may be able to “roll” your closing costs on a new construction home over to your mortgage. This would allow you to pay for your closing costs over time instead of all at once. Ultimately, though, it will all come down to the total cost of your new home. When you shop through NHC, we’ll help make sure you find a home in your budget and secure fair financing as well. Contact us to learn more about how we’re bringing the best prices on new homes to the market.

Pro Tip #3: Negotiate with Your Lender

Once you’ve decided on which lender you want to use, you may be surprised at the amount of wiggle room you may have on closing costs. Ask your lender for a breakdown of these costs and see if they can be reduced or waived. Shopping around for lenders and comparing their fees can also help you find the best deal.

NHC: America’s Affordable Builder

Now that we’ve discussed who pays closing costs on a newly constructed home, let’s talk about the homes themselves. If you’re in the market for a spacious, newly constructed property that won’t drain your savings, the time is now to lock in on an NHC home. We offer the lowest prices per square foot on homes across Texas, Florida, North Carolina, and Alabama. Plus, we’re a builder that can help pay closing costs, which saves you even more money. Ready to give you and your family the space you deserve at a price you can afford? Get your NHC home before they’re gone!

FAQs

How can I negotiate closing costs on a newly constructed home?
There are many ways to negotiate the closing costs on a newly constructed home. In certain cases, you may be able to get the seller or your lender to cover some or all of the costs when purchasing the home.

What is the earnest money for a new construction home?
Earnest money for a new construction home is a deposit that shows your commitment to purchasing the property. Typically ranging from 1% to 3% of the home’s purchase price, it is paid upfront when you sign the contract. At NHC, this could be as low as $95 when you partner with NHC Mortgage for your lending needs.

What happens if you don't have all the money at closing?
If you don’t have the money to cover your closing costs initially, you could seek a no-closing-cost mortgage, which rolls your closing costs into your principal payments.

Can you negotiate who pays closing costs?
Yes. While the homebuyer is typically responsible for covering closing costs, there are cases in which a lender or home builder will pay closing costs.