Hi Joe,
Your mortgage company should give you what is called a "good faith estimate" that is a legally required document that outlines all the fees associated with your loan. This will have all of the closing costs on it, so there is no guessing what they will be.

In terms of paying absolutely nothing out of pocket at closing, that's a long shot. But if you have excellent credit...ie 680 plus, you are able to finance 100% of the purchase price plus the majority of your closing costs. Things have certainly changed in the market. But 100% financing is still available to those who qualify. The pricing just isn't as attractive as it was a year or two ago.

The buyer and seller can not exchange any money outside of closing. All monies that change hands related to the transfer of property must be documented on the settlement sheet you will see at your closing. So talk to your mortgage company, see what the maximum seller's assist or other type of credit they can get you is, and ask for a good faith estimate so you aren't guessing at how much your closing costs will be.

-Dale Archdekin

One option would be to get a gift from a family member to help pay closing costs. If your mortgage is maxed out at 3 percent for sellers assist, then you can always call a different lender. FHA has programs where a 6 percent assist is allowed with a 2.25 % downpayment. In the current mortgage market, it is very difficult to get a loan with 100 percent financing and 6 percent assist. I sometimes question if someone can not come up with the closing costs, will you be okay with the monthly mortgage payment and the bills associated with owning a home. And for what it is worth, sellers assist does not really mean that the seller is paying for your closing costs. Instead, you are building it into the loan and financing them over 30 years so it is not always that great of an option. It works well when a buyer does not have much money saved up and it is the only option. The seller just allows it to happen and it comes out of their proceeds per se. Good luck !

Joe, with all due respect, it sounds like you're not ready to purchase a home. 2-3 years ago you could buy with no money down, get the seller to pay your closing costs an that was that. These days - no so much.

Most banks will want you to have some reserves. THat means 1-3 mortgage payments in the bank. If your closings costs are 3% of the loan then you can ask that the seller allow you to finance those payments. That's called a seller's concession. If the closing costs exceed 3% (in my area they usually do) then you have to come out of pocket with the money.

Buying a home is expensive. You usually have to pay homeowners insurance upfront, there are home inspections and other fees to consider.

You may do well to wait until you have more money saved before you begin this process.

Good luck
You can request that the seller