Closing costs can average 2 to 3 percent and are an important part of the cost to purchase a home.  Therefore, closing costs can result higher and more expensive than a buyer may have anticipated.  The best ways to save on closing costs are:

1. Include a sum, which the seller should contribute towards the closing costs in your purchase agreement. 
2. Consider a no-point loan. You may pay a higher interest rate on the loan and some of these loans may have prepayment penalties. Buyers who are short on cash but qualify for a higher interest rate may find a no-point loan more affordable. It is advisable that you run the numbers and find out how much more you will pay in interest over the life of the loan. 
3. Consider a no-fee loan. These loans may carry a higher interest but save on the amount needed to close the deal.  If the buyer does not intend to stay in the property more than 6 years, this loan may be more advantageous.  Again, run the numbers and find out how the higher interest rate will impact your expenses over the life of the loan.
4. Get seller financing. This kind of arrangement usually does not entail traditional loan fees or charges.
5. Rent the property in which you are interested with an option to buy. That will give you more time to save for the cash needed to complete the purchase.
6. Shop for the best loan before signing the final application.