Studies show that the closing costs, which can average 2 to 3 percent of a total home purchase price, are often more costly than many buyers expect. But there are some ways to save:
Negotiate with the seller to pay all or part of the closing costs. The lender must agree to this as well as the seller. Get a no-point loan. 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. Get a no-fee loan. Usually, though, these fees are wrapped into a higher interest rate though it will save you on the amount of cash you need upfront.  Get seller financing. This kind of arrangement usually does not entail traditional loan fees or charges.  Rent the property in which you are interested with an option to buy. That will give you more time to save for the upfront cash needed for the actual purchase. Shop around for the best loan deal. Each direct lender and each mortgage brokerage has their own fee structure. Call around before submitting your final loan application.