Does the closing cost get added into a mortgage? Or does it come straight out of pocket at the time of purchase?? We are buying a foreclosed home so the bank wont allow the sellers to assist with closing costs.
2006-09-15 11:00:24 · 10 answers · asked by ? 3 in Business & Finance ➔ Renting & Real Estate
It depends on the broker and lender. Most of the time, you can roll over your closing costs with the loan amount. I have done it before. I purchase like 9-10 properties, and I usualy just add to my loan amount.
2006-09-15 18:41:17 · answer #1 · answered by Siva 1 · 0⤊ 0⤋
In general, no. If the seller isn't paying them, you need to come up with that money.
The value of the property is the *lesser* of purchase price or appraised value. This means that this is the most they will loan.
Since purchase money loans are non-recourse by law in most states, you're not going to get lenders to agree to go over 100% financing on purchase money loans.
Question: Why did your agent and your loan officer not explain this to you? This is the way it is with foreclosures. Please ask them, because trying to buy foreclosures without any cash is a waste of your time. They should have known this. Did they think you were magically going to acquire several thousand dollars for closing costs? I really want to know.
2006-09-15 11:57:37 · answer #2 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
what you can do is finance the home for more than the asking price, some banks will finance up to 125% of the homes value, and get cash back at closing to cover the costs.
2006-09-15 11:03:19 · answer #3 · answered by Mrs T 2 · 1⤊ 0⤋
I don't believe so. The closing costs are there to pay for all the fee's involved in purchasing the home, like realtors fees etc. That is why you have to have some $$ saved up to buy a home. Have you been pre-approved for a loan yet? Your mortagage lender should be albe to answer this question for you accurately. Good luck!
2006-09-15 11:02:51 · answer #4 · answered by strwbrywn20 2 · 0⤊ 2⤋
in case you quite want this place of living, the terrific ingredient you desire to do is bounce out of the frying pan into the fireplace with yet another lender. in the experience that your broker has inspired you to hire FHA, then i think of he's expert. in case you have not learn the news in recent times, one hundred% financing can reason finished lot of challenge pondering the payments are ultimate and in addition they terrific paintings to commence with pondering lenders use "teaser rates" to get you interior the door. Inquiries from diverse lenders will rigidity your credit score down and can reason you to loose out on the FHA you have already been authorized for. and finally, given your latest credit score, you maximum probable would possibly not qualify for a common very own loan, it is not suitable what the down value is. in case you pick this place of living, save placed and enable the chips fall wherein they are going to.
2016-10-15 01:06:03 · answer #5 · answered by merkel 4 · 0⤊ 0⤋
The other way that this is done is actually fraud. But here is how it works anyway. After a price has been agreed upon. You know, I'm sure there has to be rules against this with yahoo. forget about it.
2006-09-15 11:51:13 · answer #6 · answered by quarterton2001 3 · 0⤊ 0⤋
Yes up to 6% of the loan amount in most cases.
Matt
http://www.diversifiedlender.com/
2006-09-15 13:59:54 · answer #7 · answered by Matt J 3 · 0⤊ 0⤋
You'll pay the closing costs.
http://www.properties.la
2006-09-15 17:42:17 · answer #8 · answered by ? 3 · 0⤊ 0⤋
Whatever the lender will allow.
2006-09-15 11:04:09 · answer #9 · answered by Anonymous · 1⤊ 0⤋
yes
2006-09-15 11:07:26 · answer #10 · answered by Anonymous · 1⤊ 0⤋