Closing costs vary from one transaction to another and will certainly be less if one is buying a property without a mortgage and its paying with cash out of their own pocket. But most people don't have that option. In addition, no-point loans can reduce closing costs. The trade-off is a higher interest rate on the loan and many of these loans have prepayment penalties. But buyers who are short on cash and can qualify for a higher interest rate may find a no-point loan will significantly cut their closing costs.
Some lenders also advertise loans without any fees, such as appraisal and escrow charges.
Generally, seller financing comes without the traditional loan fees and charges. A lease with an option to purchase is another tool sellers can use to induce a sale, where the buyer lacks sufficient funds for down payment and closing costs. The best option for reducing closing costs is to shop around. Each lender and each mortgage brokerage has their own fee structure. So call around before submitting your final loan application.