closing costs

Is it legal to have your closing costs placed in your loan? can the bank or whoever is financing you say that you can not do that, that you must have cash at closing? The bank that is selling the house was going to pay my closing costs but it would just be worked into my loan but I don't know if my finance person will let me do that, it will be quite obvious I'm not paying closing costs, has anyone had this experience?

I've never heard of this. Usually cash up front would apply if a downpayment is required or if you wish to pay points up front to buy down the interest rate. I've always seen the closings cost worked into the loan amount. Hell, that's more money the bank can earn interst on anyways. I would think they would be overjoyed that you wish to finance the closing costs.

I hear that around here all of the time--0 down or 500 down closings.

Is it legal to have your closing costs placed in your loan? can the bank or whoever is financing you say that you can not do that, that you must have cash at closing? The bank that is selling the house was going to pay my closing costs but it would just be worked into my loan but I don't know if my finance person will let me do that, it will be quite obvious I'm not paying closing costs, has anyone had this experience?


The only way the closing costs can be worked into the loan is to raise the price you pay for the home and have the seller to contribute the closing costs. There are also some programs that will allow you to go over the prive you are paying for the home and roll closing costs in that way but is is usually more costly then raising the price of hte home to cover closing costs. If you do not have in writing the amount of closing costs the seller will pay then they probably not paying any, in real estate you can not take anyones word for something you need to have it in writing.

The only way the closing costs can be worked into the loan is to raise the price you pay for the home and have the seller to contribute the closing costs. There are also some programs that will allow you to go over the prive you are paying for the home and roll closing costs in that way but is is usually more costly then raising the price of hte home to cover closing costs. If you do not have in writing the amount of closing costs the seller will pay then they probably not paying any, in real estate you can not take anyones word for something you need to have it in writing.

Right now I am just in the negotiation process and after talking with my realtor she was telling about them raising the price of the house and financing the closing costs. I just wanted to make sure there was no funny business here that I would later be in trouble for.

Right now I am just in the negotiation process and after talking with my realtor she was telling about them raising the price of the house and financing the closing costs. I just wanted to make sure there was no funny business here that I would later be in trouble for.


You will be fine as long at it will appraise for the higher amount, but you should not have anything to worry about.

You will be fine as long at it will appraise for the higher amount, but you should not have anything to worry about.

Thanks alot MTG Banker, that makes me feel better.

I have been informed that I can not work my closing costs into my loan if my offer is accepted because this house is a VA home not buying from a person, purchasing from the VA.

Is it legal to have your closing costs placed in your loan? can the bank or whoever is financing you say that you can not do that, that you must have cash at closing? The bank that is selling the house was going to pay my closing costs but it would just be worked into my loan but I don't know if my finance person will let me do that, it will be quite obvious I'm not paying closing costs, has anyone had this experience?


PLEASE find out how much the closing costs are before you go any further. there is no reason that the seller shouldn't at least pay half of the closing costs. There should also be no reason that they couldn't raise the loan amount by one or two grand before you purchase this either, and let you include the closing costs in.

Newstart- What lender are you working with?

The way we are doing it we're getting money back at closing and we are the buyers!

We negotiated into the contract that the seller would pay $2,000 twords closing costs. We put down an earnest money check. We will get back the earnest check plus what's left of the $2K.

Definitely negotiate to have the sellers pay at least a portion of the closing costs.

But beware of 103% financing programs from banks to help cover the closing costs...the interest rates are terrible when borrowing that extra 3%. You should only be borrowing up to, but not over, 100% of the sales price of the property.

I have been informed that I can not work my closing costs into my loan if my offer is accepted because this house is a VA home not buying from a person, purchasing from the VA.


Did you already have an offer accepted? Usually in situations with bank owned properties you get one shot to make it right with the closing costs paid by the seller. May times they will not renegotiate after the fact, if it is a foreclosure.

No that's what I'm waiting for but trying to get all my ducks in a row. This house has been on the market since August of 2005 but I guess all offers received have been shot down. I would really like to get this property but I just don't want to have to pay all the closing costs. any suggestions on what I need to do?

No that's what I'm waiting for but trying to get all my ducks in a row. This house has been on the market since August of 2005 but I guess all offers received have been shot down. I would really like to get this property but I just don't want to have to pay all the closing costs. any suggestions on what I need to do?


What did your broker quote for closing costs? I can not imagine why a bank owned property would have turned down so many offers in the past year, the offers must have been some seroius lowball offers. Your realtor just needs to write the offer to include: seller to contrubute $2500 to buyers closing costs, prepaids, etc. The $2500 figure is just an estimate I use for conforming loans, subprime is usually higher because of the extra lender fees.

Nick,why just $2500? Where did that number come from? What if the house is selling for 30 thousand? Or what if it is selling for 320,000? Shouldn't you know how much the house is selling for first??? Maybe she can get MORE seller contributions than $2500! Besides, she already said that they won't contribute anything......why would you want her to ask her agent to do it anyways? If its a VA home they won't contribute to closing costs....I don't understand what your trying to tell her...........

Nick,why just $2500? Where did that number come from? What if the house is selling for 30 thousand? Or what if it is selling for 320,000? Shouldn't you know how much the house is selling for first??? Maybe she can get MORE seller contributions than $2500! Besides, she already said that they won't contribute anything......why would you want her to ask her agent to do it anyways? If its a VA home they won't contribute to closing costs....I don't understand what your trying to tell her...........


If you were reading she said that they would not allow the closing costs to be worked into the loan she did not say anything about the closing costs being paid by the seller. $2500 is a general number that I use here in Columbus, Ohio area because the sellers pay the title insurance for the buyer. If you are doing a conforming loan with no points $2500 is usually a pretty good number to use to get into the home for $500 or less. It is different in diffferent states or county to county for that matter. Some states have state taxes in reguards to purchasing or refinancing a home like Florida for example. Obivously the more you get the better when it comes to closing costs, but some brokers will just ask for more so they can line their pocket more and not offer a better deal to the client. Your closing costs are the same pretty much no matter how much house you buy except for title insurance or state taxes associated with the transaction. The title companies do not give you a break if your house costs $30k or if you are buying the home for $300k the title charges are pretty much a cost you can not get around and I feel it works against many people that are buying smaller homes because they do not get abreak on the costs associated with transfering the property or handling the money. The closing costs is a figure that she needs to go over with her broker or banker, they would know more what is needed because they are familiar with the situation as I am just posing in a general nature. I do not understand why you are so worked uo over this?

FWIW MTG is right on with the figures. Ours is going to run about $1800 on the house we're buying. Closing is usually $2-$3K regardless of the home. Pre-payment of taxes is the big factor.

What did your broker quote for closing costs? I can not imagine why a bank owned property would have turned down so many offers in the past year, the offers must have been some seroius lowball offers. Your realtor just needs to write the offer to include: seller to contrubute $2500 to buyers closing costs, prepaids, etc. The $2500 figure is just an estimate I use for conforming loans, subprime is usually higher because of the extra lender fees.

Nick, they said they had it priced at 180,000 and then came down to $155,900. My realtor said about 6 months ago they were not willing to negotiate on anything but seeing that it is a buyers market now they will look at offers. My realtor did say the VA isn't willing to pay any closing costs.

Who's worked up? Im just asking a Banker a simple question! If that upsets you...I didn't mean to... sorry!:cry: You also can just ignore me!!

So...you are saying a person who buys a $30,000 dollar house and a person who buys a $350,000 dollar house will have the same closing costs??? WOW!!Is that a law in Ohio that the seller has to pay the buyers title insurance? Why would they do that? That kinda seems unfair to poorer people who have to pay the same closing costs as a well off person! I had to take a home buyers seminar when we got approved for our loan with Fannie Mae/HUD and they said closing costs on a national average are between 4% and 6% of the price of the house. It must be GREAT to buy a house in OHIO!! That sounds to good to be true though! And also,if someone gets a loan from you...say a $200,000 purchase and the total costs and nickel and dime stuff comes to around $2500 like you said, how do you make your money? Theres no room for any points in there....do you charge a higher rate to buyers to make your money? Do you ever charge the borrower any points? If not, my old college roomate is getting a transfer to Dayton and will be looking for a house soon. Send me your contact info so I can tell him where to call to get a loan with no points and a hopefully a low:angel: rate!

WOW!! Thats great Jeepmom! Damn!! I wish I was born in Cleveland!!:clapping:

What did your broker quote for closing costs? I can not imagine why a bank owned property would have turned down so many offers in the past year, the offers must have been some seroius lowball offers. Your realtor just needs to write the offer to include: seller to contrubute $2500 to buyers closing costs, prepaids, etc. The $2500 figure is just an estimate I use for conforming loans, subprime is usually higher because of the extra lender fees.

I was quoted between $3 - $4K for closing. I guess VA wanted full price for property. I wish there was a way I could find out if there were any recent offers.

Nick....Are you a broker or do you work for a Bank, as in "MTGBANKEROH"?? What states can you do loans in? Mark

Nick, they said they had it priced at 180,000 and then came down to $155,900. My realtor said about 6 months ago they were not willing to negotiate on anything but seeing that it is a buyers market now they will look at offers. My realtor did say the VA isn't willing to pay any closing costs.


If that is the case then, I guess there is not much you can do about it then. Typically you can not fianance closing costs unless your are going over what you are buying the home for like a 103% program. But the rates are usually prety bad on these programs and you have to have pretty clean credit. Your broker can also charge you a higher rate and pay your closig costs for you but that will amount in a much higher payment as well. It seems the house may be a good deal, though.

195205629-fb-793


What is that?

I don't get it. That's no my case number. Case #'s aren't written up like that so I don't get it.

DAMN! This broad actually went to pacer to pay to look up someone's case number? And she didn't even get the right one???? HAHAHA! Funny $#!t......