closing costs

[newstart]

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?

[BassBoy]

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.

[anonymuse]

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

[MTG_BANKER_OH]

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.

[newstart]

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.

[MTG_BANKER_OH]

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.

[newstart]

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.

[newstart]

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.

[tinroofrusted]

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.

[Tedderbear]

WHo is your lender?

Newstart- What lender are you working with?

[JeepMom]

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.

[AfterBkMortgage]

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.

[MTG_BANKER_OH]

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.

[newstart]

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?

[MTG_BANKER_OH]

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.