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39157 : Real Estate Advice

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  • Home Buying1
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Activity 4
Sun Jan 1, 2017
Lovesick20032003 asked:
Thu Nov 14, 2013
Phil Rotondo answered:
Closing costs are negotiable and stipulated on the contract.
A title company or real estate attorney can give you an estimate for closing costs.
0 votes 1 answer Share Flag
Tue Jan 24, 2012
Deborah Garvin answered:
Wow, how cool is this...all of the agents posted the right answer! LOL!!! There are no exceptions to this guideline...not for lender and not for loan product. One of the few "ABSOLUTE" rules of lending. Down payment must come from you and/or documented gift (depending upon loan product). Of course, VA and USDA will allow 100% financing.

Now, the good news is that you will have "instant equity" the minute you buy the house. Say you are buying a home for 100K and it appraises at 125K and you are doing an FHA loan. Your would need 3500 (3.5%) of the 100K purchase price and you would have both upfront and monthly mortgage insurance. However, the day after closing your home is really worth 125K. Most lenders would require six months payments (some 12); however, after the necessary evidence of your required payments, a lender could refinance you into a conforming 80% (or less) loan with no mortgage insurance.

The above scenario is a perfect example of a situation that I would recommend that the borrower take the HIGHEST possible interest rate on the FHA loan I know we want to refinance at the earliest possible moment. I would not want that borrower to put any more money into the initial financing that absolutely necessary (none would be preferable). Save the dollars for closing costs for the PERMANENT financing we plan to do in six or twelve months.
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