Closing costs?

SO I am buying a house for the first time I have no money on hand to pay closing costs I am wondering what is involved on the buyers side of the closing costs I havnt started the process yet b/c i cant if closing costs are too high?

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  • Anonymous
    1 decade ago
    Favorite Answer

    Closing costs vary greatly throughout the country. Closing costs consist of prepaids (taxes and insurance), inspections, and title work. Who pays for what varies from place to place and, more importantly, the amount varies greatly. Taxes are the biggest variable.

    I would suggest you talk to a realtor in your area. Explain your situation. If you are renting, suggest that the closing be at the end of the month. That will give you one month's rent to use toward closing since a mortgage payment wont be due until a month later. When you make your offer, ask for points toward closing costs. In today's market, many sellers will pay points for a full price offer. Then if you get a 100% mortgage, your closing costs will be very low.

    Good luck.

  • 1 decade ago

    No matter what the advertisements say, there is no such thing as a "no cost" loan. If you elect to go with one of these lenders, you will pay closing costs in the form of a higher interest rate, which equals higher monthly payments. You can roll the closing costs into the loan so you don't have to pay anything upfront, but, this increases the loan amount, and a larger loan will obviously require higher payments to pay off because the term doesn't change. But those are your options if you don't have the cash to pay costs upfront. The good news is, the interest is tax deductible. The bad news is, since you financed your closing costs, you're paying interest on them, effectively multiplying the actual amount of the closing costs every month you're in the loan. I would recommend waiting until you have the money to pay the closing costs at closing- keep your loan size as low as possible so you can start building equity right away and have room to maneuver if your property value drops. You're going to be paying thousands of dollars in interest, why increase that number more than necessary by rolling in closing costs?

    Source(s): Loan Officer
  • 1 decade ago

    Depending on what state you live, closing costs can include escrow fees, transfer taxes (city/state), policy and home insurance, notary, recording deed, loan origination fee, appraisal, credit report, interest on new loan (from the date of close until the first payment is due), fire insurance, HOA fees (if in a homeowner's association), and any other adjustments made by close of escrow. The closing statement is usually a one-pager, showing the purchase as a debit to the buyer, the loan as a credit. If you feel you cannot afford to pay closing costs, ask your lender to include these costs in the close of escrow, and he/she will work it into your total balance owed. It shouldn't be a problem so long as you give your lender enough notice. You can always ask him too, how much are the costs? and get a good estimate from him before you decide if you can or cannot afford to pay them separately. Hope this helps..!

  • 1 decade ago

    Well you better get some money or you will have to take out a second loan to cover the closing the costs. Buyers will sometimes help with costs but some mortgage companies limit as to how much is allowed. Usually 3% of the mtg price, although the seller could add it to the sales price.

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  • 1 decade ago

    Offer full price for a home and have the seller pay your closing costs. The are also 1st time homebuyer programs out there for 100% financing. I am a loan officer and do this all the time.

  • Anonymous
    1 decade ago

    If you figure 3% of the sales price for closing costs you're going to be close. Don't forget though that you will have prepaid costs as well though. Those will consist of the first yrae's fire insurance and the property tax pro-rates.

    Source(s): 20+ years as a direct mortgage lender
  • Anonymous
    1 decade ago

    Ask if you can include the closing costs in your loan. If your credit is good you won't have a problem. Good Luck.

    PS I own many rental units and I thank people that buy them for me. Your doing a smart thing.

  • 1 decade ago

    Well you can get seller concessions to cover closing costs, most banks will allow this to cover any fee that is non recurring, or fees that you won't be paying monthly. It's good for the seller, because alot of times it's the difference between getting the sale done.

    Source(s): Mortgage questions? Email me at scornwell@newworldfederal.com
  • 4 years ago

    "At the time I purchased my house,I owned an additional home in Ca" What happened with house in Ca? Did You sell it? If so why didn't you put the proceeeds against this debt? If you didn't sell it, why do you keep it? If the rate is fixed for a whole 30 years, with no chance of going up, I think you will be happy in the future when inflation kicks in. If it is not fixed, You have too much debt to equity in my estimation.

  • 1 decade ago

    It's possible to roll the closing costs right into the mortgage. Ask the lender.

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