Home Buying in 21221>Question Details

Mspeach, Other/Just Looking in Baltimore Highlands,...

what if you have no money for closing cost? Are there options around this issue?

Asked by Mspeach, Baltimore Highlands, Baltimore, MD Thu Apr 16, 2009

I would like to find a nice place to call home. I'm uncertain how to handle the process. I'm single. Can someone find options around the 20% closing cost?

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The first thing you need to do is speak to a loan officer and get pre-qualified and have your situation assessed by a professional. There are different programs out there that have guidelines that vary greatly with regards to income, assets, credit score, and location of your intention to purchase.

Yes, the seller's in this market are usually responsive to contributing to your closing costs but if the property it being sold by the bank they might not be so inclined to help. Some programs require you to attend a first time buyer class to qualify for assistance too.

Being a loan officer I just think it's much better and less stressful if you speak to the loan officer first, then pursue the home of your choice. Why go look at a home you can't afford to purchase? Don't waste your time or the Realtor's time, start with yourself first then move forward in the right direction from the beginning.

I hope this helps you with one of the most exciting moments of your life! Do it the right way and enjoy it even more! Good luck!
Web Reference: http://www.myloanladies.com
1 vote Thank Flag Link Thu Apr 16, 2009
Absolutely yes!!! It is called 'seller concessions'. Here is a simple example of how it would work: Let's say the house you are interested in is listed for $250,000.00 and you want to offer $242,000.00 however you don't have the required closing costs which will probably add up to about $7500.00 + your down payment funds. You can add the closing costs into the purchase price and offer the seller $249,500.00 and add a clause to the Sales Contract that states "seller will contribute $7500.00 toward buyers closing costs and pre-paids". This is acceptable with all types of financing.
If you have a real estate agent ask him/her if they know about 'seller concessions' and if not then at least use a mortgage loan representative that does.
'Seller Concessions' are very common in today's real estate market and have always been utilized by first time home buyers.
I would also suggest that you look into securing a FHA mortgage rather than a conventional mortgage.
0 votes Thank Flag Link Fri Apr 17, 2009
Mspeach, there are options! I suggest you speak with a loan officer. They are qualified to answer all of your financing questions and will help you get pre-qualified. Then you will know exactly what you can afford and what you need to do to get to closing. Give me a call! I can recommend a proffessional, kowledgeable and honest person to help you. I suggest you take this step before trying to look for your new home, which I will be glad to help you with.

Brenda Scarorough
Long and Foster
410-931-6300 Office
0 votes Thank Flag Link Thu Apr 16, 2009
There are many programs available for first time home buyers. I specialize in home buyer grants and I would be happy to discuss this further with you.

All my best,
Jennifer Bayne
Web Reference: http://www.LivingMD.com
0 votes Thank Flag Link Thu Apr 16, 2009
I am a first time buyer and I am living in the home that I want to purchess I have already been approved and heading for underwriting, but am short on closing cost what should I do?
Sybil -sybillouiechester@gmail.com
Flag Sun May 1, 2016
If your a first time home buyer there are some programs that can assist you. You may also ask the sellers to pay the closing cost. You, as a buyer, will still have to come to the table with at least 3.5% of the purchase price. If you want more information feel free to contact me.
0 votes Thank Flag Link Thu Apr 16, 2009
Ask the seller to pay closing costs. The closing costs will not be 20% but there may be a down payment and other costs that will bring the required payment at closing up to the percentage recited. Vicky makes some good points.
0 votes Thank Flag Link Thu Apr 16, 2009
Are you a first time home buyer? Look at FHA loans - 3.5% down and it can even be a gift. In VA, we have a no money down option if you are income qualified (vhda plus), and the Veterans Admin offers a no money down options, if you are a vet.

After you close, you'll likely qualify for a tax credit of up to $8,000, PLUS your normal mortgage interest tax breaks.

You need to find a real estate agent and ask for a referral to a lender and start working on this. YES, there are options for you. Are you looking for a home in Baltimore? I know a great agent there - email me and I will connect you (vchrisner@kw.com)
0 votes Thank Flag Link Thu Apr 16, 2009
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