Answers
Closing costs rolled into the mortgage?
Hello again, all! I've figured that I can save $12,000 total to finance my family for down payment, closing costs and prepaids (assuming a max purchase price of $140,000 - that's my personal limit). Unfortunately, most estimates I've gotten from lenders have said I'd need at least $14,500 saved to cover all the fees (downpayment of 5%, closing costs, and one-year's escrow). The escrow seems a bit unfair, being a whole year of payments, but I've read you can't really negotiate them. The closing costs, however, are estimated at $3,000 most places I've looked. If I can absorb them in the cost of the mortgage, my $12,000 would be more than enough for what I want to do. My question is -- how often will lenders allow you to roll the closing cost into the mortgage? Is that pretty rare? Must you have stellar credit or a higher down-payment? I don't think I'd be comfortable asking the seller to pay those costs. I'm just thinking myself around this. :)
Best Answer:
you need to seek the guidance of a good mortgage loan officer , in most purcahse transactions that i have done over the last 10 years it is very usual to ask the sellers for what is called a sellers assist for closing costs and prepaids, it is very legal to do this and can be as much as 6% of the sales price, for u at 140,000 that would mean 8400. especially in todays market i think you would find many willing sellers to help with your closing costs. also if u have the appriopriate credit why not find a bank to do an fha loan, closing costs and down payment will be less, dont think you have done enough research, STAY AWAY FROM BROKERS UNLESS YOU HAVE DAMAGED CREDIT, gl.
Answers:
I Heard that some seller will ( it's a 50/50 chance.)
Why wouldn't you feel comfortable asking the seller to cover some of the closing costs? Last I read in my state, up to 6% seller concession can be made toward closing costs (that is generally a mortgage lender guideline, not a law).
What does your realtor say about all this? Since you don't mention one, I presume you are going into this unrepresented. I would advise against that for the same reason I would advise against defending yourself in a murder trial. The stakes are simply too high to let someone without experience represent you in what can be an absolute nightmare if there are problems. Can you get the job done yourself? Sure, but considering you can get someone to do it for you at little to no cost, why would you represent yourself?
yes, you can roll with closing into the loan, but today, there may be a appraisal problem.
I suggest that you make an offer on the home to have the SELLER pay all your closing. This is happening all the time.
You may pay full price, but if the seller pays the closing, it's the same as a discount and saves you money vs a few dollars each month.