Home Buying in Elgin>Question Details

Keith May, Other/Just Looking in Elgin, IL

Heard that sometime when closing you don't have to pay the closing cost?

Asked by Keith May, Elgin, IL Fri Apr 6, 2012

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Hi Keith,

There are several ways that you as a buyer can get your closing costs covered or paid for you.

1) The most common way is through seller concessions where the seller agrees to pay your closing costs.

2) Your lender can pay most if not all of your closing costs by charging you a higher interest rate.

3) The no money down USDA mortgage will allow you to roll your closing costs into the loan as long as the appraised value supports. The downside here is that you have to buy a home in a rural area and qualify under the county income limits.
1 vote Thank Flag Link Fri Apr 6, 2012
You, as a buyer, can ask the seller to provide a closing cost credit in your contract to purchase. You can use that credit to cover your closing costs. Keep in mind that the seller considers this against his bottom line when deciding what sales price to accept and the property will still need to appraise at full purchase price. Let me know if you have any other questions. Your realtor (or if you need on, please feel free to contact me:-) will be able to help you with how to go about this and other aspects to the buying/negotiating process. Thanks, Jennifer Leonard-Biddle (630) 464-4230
1 vote Thank Flag Link Fri Apr 6, 2012
Keith, the answer is "it depends". What kind of closing costs do you mean? Loan closing costs or a costs related to the sale/transfer of real estate? Lets narrow the question and get you good information.
0 votes Thank Flag Link Fri Apr 6, 2012
Hi Keith,

Great question! There are ways to buy a home without having to pay closing costs out of pocket. Several lenders, including a couple in your area that I could recommend, have programs available that can assist with down payment/closing costs. What's available will depend on your circumstance - factors such as the type of sale, if you're a first time home buyer, etc.

The other way to defray closing costs is to ask for a seller concession. The seller can give you a certain percentage or dollar amount back at closing to pay for closing costs. This amount can't be more than your actual closing costs.

We would be happy to provide you with additional information, or give you recommendations of lenders in your area that can help. We are FULL-TIME Realtors with extensive residential, short sale, foreclosure, relocation, first-time buyer, new construction, and investor experience. Having a team allows us to give our clients the level of service that they deserve. Contact us at 630-205-5568 or by email at teresa@plproperties.com and we'll be happy to help!

Have a great day!

Teresa Stultz
Premier Living Properties
0 votes Thank Flag Link Fri Apr 6, 2012
True in situations. Are you already dealing with a lender? Send me a private message and I will explain how the closing cost work.
0 votes Thank Flag Link Fri Apr 6, 2012
No such animal, same as a unicorn. All mortgages have closing cost; lenders are not non-profit organizations, at least not by choice! Try to go to the clerk’s office and record a mortgage without paying for it. All lenders sell money based on yield, the higher the yield the more profit there is in the loan, excess profit can be used like a check to pay the closing cost on your behalf. It isn’t free, it isn’t a gift, it is a business transaction. There is nothing wrong with structuring a loan like this, I have closed maybe a thousand where at least part of the closing cost was covered doing this.

Just don’t let anyone convince you it is something free. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri Apr 6, 2012
It is not by accident that you do not pay any closing costs. You need to work with a local and trsuted loan officer that can place you in a low or no clocing cost program as well as you can work with a good buyer agent who can negotiate your offer up front that the seller pays for your closing costs. It can easily be down. But needs to be done correctly and up front. good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Apr 6, 2012
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