topic Re: Closing costs in Mortgage Loans

Closing costs

rm3 — Thu, 26 Sep 2013 13:24:06 GMT

How can closing costs be paid? Options?

Re: Closing costs

namvet — Thu, 26 Sep 2013 13:33:36 GMT

Closing costs may be paid by the buyer or seller in the case of a purchase transaction. Lender approval will be required and it must be spelled out in the purchase contract.

Re: Closing costs

rm3 — Thu, 26 Sep 2013 13:50:04 GMT

Does it increase the purchase price? for example, my purchase limit has to be 115,000 to qualify for 2.5%. does that leave the only option of the buyer, me, paying the closing costs? just trying to see if there are any other options or should i just plan on having the funds needed by closing.

Thank you

Re: Closing costs

namvet — Thu, 26 Sep 2013 14:06:34 GMT

The purchase price must be agreed upon by the buyer and seller and the appraised value must be for at least that amount. If you have a realtor then i would discuss this with him or her. Your loan officer should also be able to answer these questions for you. I'm sure others will comment on this post and give you some good advice. Good luck!

Re: Closing costs

DallasLoanGuy — Thu, 26 Sep 2013 18:38:08 GMT

closing costs can be paid by the seller or buyer.

limits depending on the program

example: you find a home for $100k and negotiate it down to 96k
or

pay 100k and ask the seller to pay 4k of your closing costs... seller still nets 96k

costs are't added to the loan.

Re: Closing costs

rm3 — Thu, 26 Sep 2013 19:32:07 GMT

my lo is telling me the only way to do this would be to bring the purchase price up to 118k- negotiated 115k and seller pays 3k closing costs. If that makes sense, I have to pay closing to get the 2.5 interest rate......bummer but i'll take the rate over the 3k.

Re: Closing costs

namvet — Thu, 26 Sep 2013 19:38:53 GMT

That sounds like a good plan to me! Good luck!

Re: Closing costs

DallasLoanGuy — Thu, 26 Sep 2013 20:54:52 GMT

@rm3 wrote:
my lo is telling me the only way to do this would be to bring the purchase price up to 118k- negotiated 115k and seller pays 3k closing costs. If that makes sense, I have to pay closing to get the 2.5 interest rate......bummer but i'll take the rate over the 3k.

well, if you are already under contract.... yes, you would have to renegotiate the contract.

Re: Closing costs

rm3 — Thu, 26 Sep 2013 22:23:48 GMT

Not under contract yet but the way it looks I'll be paying the closing costs out of pocket.