Home Buying in Philadelphia>Question Details

Mershane, Home Buyer in Philadelphia, PA

We were approve for a mortgage.But we need more money for the closing cost. Can we use the cash advance for the our credit card. Thanks

Asked by Mershane, Philadelphia, PA Tue Mar 13, 2012

We have have great credit. Thanks

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Answers

12
Hi Mershane,

Have you found a house yet? Are you in contract yet? Your Realtor should be able to structure the purchase contract so that you can receive a Seller's Assistance Credit toward your closing costs.

Once you negotiate the sales price with Seller, you may be able to add up to 6% on top of the agreed price, then the Seller refunds that amount at settlement to help you pay closing costs. You are basically borrowing your closing costs and paying it back in your mortgage payments.

Check with your mortgage broker to see what level of Seller Assistance is permitted for your loan program.

If you are not yet working with a Realtor, please feel free to call me to discuss how I can help you. I would be happy to represent you as your Buyer's Agent at no cost to you.

All the best,
Larry Lichtman
REALTOR, Property Manager
Cell: (267) 254-7994
1 vote Thank Flag Link Wed Mar 14, 2012
Once you are approved for a mortgage
do not increase your credit. It will be looked at again before you closing. In this housing climate most sellers are willing to give seller assist. An FHA loan will allow you to recieve up to 6% seller assist from the seller. A conventional loan will allow 3%.
1 vote Thank Flag Link Tue Mar 13, 2012
Hello, Mershane....NEVER, and I do mean NEVER, borrow money from your credit card for the closing costs. If you are short you have two options:

1. You can get financing from PHFA.org and they will lend you $3,000 at a very low rate
2. You can get a seller assist to help with your closing costs
3. You can do both of those things on one deal.

If you need any other help, just let me know. Good luck with everything.

Carol Cei, Realtor, ePRO
ReMax Platinum Club
Five Star Professional
215.643.9661
carolcei@remax.net
Web Reference: http://www.carolcei.com
1 vote Thank Flag Link Tue Mar 13, 2012
Thats a question for your Mortgage Rep.... it may effect your over all DTI= Debt to Income Ratio....

If You need help in the Home Search + selecting your perfect home.... We can Help.

We have been in the business over 16 years.

All the Best John + Sheri Curci RE/MAX Properties http://www.HomeCatch.com 215-757-2889
0 votes Thank Flag Link Wed Mar 14, 2012
Mershane,

Sounds like you have already had lots of answers but I would suggest negotiate the seller to contribute towards the closing costs. Or roll the closing costs into the mortgage. In other words increase the sales price to cover the closing costs.
0 votes Thank Flag Link Wed Mar 14, 2012
I look into everything everyone told me to do and came up short. My husband makes to much money for any assistant or help. But again thank you for your time and help with this question, Mershane
0 votes Thank Flag Link Wed Mar 14, 2012
How much are you short? Are you saying you have all of your down payment but had some unexpected closing costs that exceed your down payment??
0 votes Thank Flag Link Tue Mar 13, 2012
OK that's answer that question. Thanks to all of you for your help. I will look into everything you told me to do. I appreciated this help.
0 votes Thank Flag Link Tue Mar 13, 2012
It is not wise for you to borrow against your credit card, but also the bank will see this as another debt and this might affect your debt to income ratio. Am not sure what type of financing the agent your working with helped qualify but If it is not PHFA this is one route you can go. Rates are really competitive 3.875 fix, you can get up 2% of purchase price up to $4000 to help you pay for your closing cost. There are income limititaions in order for you to qualify for this money. Another option depending on the lender you can have this money given to you as a "gift" the funds have to come from a bank account in the form of a check. You can have a friend or a relative write a gift letter stating that this money wont have to be pay back, along with the letter gifter must provide bank statement showing funds in the account and funds coming out of account, In reality the bank is not going to verify if indeed this money has to be pay back a simple letter will do. Hope this information will help you, best of luck and if you have any questions please feel free to contact me.
0 votes Thank Flag Link Tue Mar 13, 2012
Hi Mershane,

Unfortunately, you can't take a cash advance on your credit card to pay for closing costs. The way the banks see it you are taking borrowed money to obtain more borrowed money. However, you can ask for a seller's concession to help pay for the closing costs. You may also look into other financing options with lower down payment requirements. There are first time home buyer programs which will give you money for down payment and closing costs. USDA could also be an option. This program offer's 100% financing. Please contact me at your convenience. We can discuss what options you may have.

William McConaghy
Senior Mortgage Consultant
Lincoln Mortgage Company
office: (856) 810-1200 ext. 223
cell: (609) 207-9098
e-mail- wmcconaghy@linc-mort.com
0 votes Thank Flag Link Tue Mar 13, 2012
That would change your debt ratio...ask the seller for assist
0 votes Thank Flag Link Tue Mar 13, 2012
Dear Mershane:

First seek another more sensible solution. The city of Philadelphia and a slew of non profits have home buyer programs that can get you cash for closing if you attend a few classes. A much smarter option.

Did your buyers agent get you a sellers assist when you wrote the contract? I hope you have a buyers agent.

Exhaust all other options before you get your back to the wall on a credit card cash advance. They are very expensive and it is not a savvy financial move. The end does not always justify the means. Seek more help from resources in the community. Go to CLARIFI - its a financial website based in philly, check out the city programs at Housing and Community Development. Seek other options. Protect yourself and create savings. A house is a great investment but not if you are out on a weak limb. Email me if you need help.

Ana Barlow, Coldwell Banker Preferred Philadelphia
anabarlow@gmail.com
215.701.9117
Web Reference: http://www.anabarlow.com
0 votes Thank Flag Link Tue Mar 13, 2012
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