I like Trulia because I can ask a question of something I donâ€™t and get a lot of good answers.
Thanks you guys
One think you did not mention was if the property you were considering was a short sale property.
I have seen situations in which the short sale lien holder will not approve the short sale for a buyer using a conventional loan who wants to be given a credit for recurring and non recurring closing costs. (They approve the short sale but deny the request for closing costs.)
I have then seen the same short sale lien holder authorize short sales with a credit for recurring and non recurring closing costs, but only for FHA or VA loans.
Best of luck to you,
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On a purchase however, you cannot finance closing costs and lender fees into a transaction as you don't have any equity in the property to cover those costs (which would be your money). The costs associated with the purchase would be paid for in one of three ways, or a combination of several:
1. as eluded to previously - a "seller concession" would allow you to apply funds towards "non reoccurring" costs (as the name implies, items that will not occur again and are one time associated with the service). *Keep in mind that "seller concessions" cannot be applied toward down payment however, only closing costs.
2. increasing the delivery rate via the lender - by increasing the rate delivered you can often cover much if not all of the costs associated with the transaction depending upon what the lender can provide (no all lenders offer rates with enough adjustments to cover the costs in full)
3. cash on hand - this would be in addition to your down payment
I hope that provides the clarity you need Bart. I'm not going to send you to my web page, if you desire my assistance you are welcome to reach me directly anytime.
Best of luck on your needs.
Yours to count on,
The answer is yes. But the question is what are you trying to achieve? Lower out of pocket costs. Is that in your best interest?
I am assuming that this is a purchase and not a re-finance. If you have not made a purchase offer yet, ask your realtor to include closing cost allowance in the purchase contract. You may not get everything you ask for, but if you do not ask for it, you will definitely not get it if it is not in the contract.
If you have an accepted offer on a purchase, check with your lender.
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Please see my blog with tips and advice on getting a mortgage in todays market
I used to be a mortgage broker, so feel free to contact me if you have any further questions.