It can be hard finding enough money to pay for your down payment on your new home. With many lenders requiring at least 20% down, we are talking a large amount of money. Don't forget that you will also need to have cash on hand to pay for the closing costs as well. Suddenly it all seems to really be adding up.

Did you know that your closing costs aren't out of your control? Whether you are buying a home or refinancing, it is possible to cut closing costs. All you have to do is ask.

If you are buying, the simplest way to cut your closing costs is to bargain for the seller to pay a portion of your costs. Depending on your loan program, the seller may contribute up to 9%.

If you find that you must lower your closing costs, but that you will have plenty of money for your monthly mortgage payment, you could suggest a trade. Have your lender increase your interest rate in return for the lender paying some or all of your closing costs. You could also roll your costs into your loan. Your debt will be bigger, and you will have higher monthly payments, but you will need less cash on hand for closing.

Many lenders are looking more at your strength as a borrower and less on the valuation of the property. If this is the case, your approval may require only an "exterior" appraisal, instead of a full appraisal. Depending on the size of the property, you could be saving a couple hundred dollars. Most lenders will not ask you if you want a full or exterior appraisal, so you have to ask which is required.

If you are refinancing, you may be able to submit your current appraisal instead of a new appraisal. You could save hundreds. It may be that your lender will require a recertification of value from the last appraiser, but this usually costs under $100. Again, you will have to ask if they will accept this documentation.

Most title companies will issue discounts when refinancing with them again, and they will heavily discount policies that aren't very old. But did you know that many title companies offer their own escrow or closing services. Your bank or lender may offer closing services also. This will save you a lot of money as there are fewer fees involved.

If you have recent documents, it may not be necessary to have the work performed again. A recent survey may be adequate. You may be able to simply update or duplicate what you have. For example, ask for re-issue rates for title insurance.

Will you be able to receive a discount on everything? No. But be aware that you have to ask the questions, lenders will rarely let you know.

Copyright 2005 #1 Loans USA

Martin Lukac, represents, #1 Loans USA(http://www.1LoansUSA.com), a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more