Closing date is near .... any actual word on the $8000 towards closing costs.

[Anonymous]

So heres the run down,  it took me along time,  a good job and $1000's to get my credit good enough to buy a house!  My middle is 646.  I have the 3.5% for the closing costs I've already paid the $250 inspection and $425 fha app.  All closing costs are being paid by the seller (bank owned) but I neglected to realize and wasnt made aware of ie I was sold on the "all you need is 3.5%" speech of the other prepaid costs,  doc fees underwriting mortgage app etc it comes to about $1500 extra.  That I don't have ( I close on the first)  SO I've tried to figure out this monetizing some of this $8000 but cannot figure it out and either can the lender.  Any other ideas?  Payday loan?  Short term loan?  Agency helping?  2nd mortgage?  

Any help would be so much appreciated!

Thanks!

[Anonymous]

A payday loan is a very bad idea.... do you have a family or friend you could borrow the money from? Haven't heard many LOs who know a whole lot about monetizing the refund. Most likely will just go away unless they extend the tax credit.

[Watchmann]

If you have no reserves to cover these sorts of costs you are setting yourself up for disaster once you close.  There are always things that come up as a homeowner (water heater, a/c, plumber, etc, etc).  You must have some funds available to cover these items that are not able to be determined now but will certainly occur in the future.  No matter how you figure it you will always need MORE money than you thought once you own your own home. 

[Anonymous]

I'm with Watchmann.  Not having enough padding to cover an unexpected $1500 would scare me if I were heading into a house.  But I don't understand why you have to come up with closing costs if the bank is covering them all.  Was there a dollar limit and the costs ran over or..?

Message Edited by rmily on 06-28-2009 05:22 AM