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can closing costs be financed into the loan and paid off over time instead of upfront?

worried i won't be able to pay the closing costs for my mortgage upfront. are there options for a great credit borrower to finance them into the principal? by alimosher78688227 from Burley, Washington. Sep 22nd 2014 Reply


Christopher Stancato (Kyle Stancato)
#6 ranked lender in Washington - 59 contributions

Yes...depending on what program you are using there are several ways to reduce or remove your closing costs. You can call me or email me with any questions. Kyle Stancato..Bayview Home Loans..here in Tacoma..253-460-6000

Sep 22nd 2014
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Dalibor Vavrek (Dalibor)
#92 ranked lender in Washington - 24 contributions

Yes you can finance closing costs. We can also show you how to do NO Closing cost loan. Give me a call 425-351-5363 Dali Vavrek WAFIRST Mortgage

Sep 22nd 2014
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Dave Skow (daveskow)
#19 ranked lender in Washington - 141 contributions

9/22/2014not really ...but here are soem possible solutions:Assuming this is for a purchase loan :1) offer the seller a slightly higher price but then also ask seller to provide a seller credit that you can then use to pay for the closing costs 2) consider taking a higher interest rate on the loan and ask the lender to provide a lender credit to cover the closing costs if you would like more information on these options I can be reached at :Dave Skow 206 714 9745daveskow@eaglehm.com

Sep 22nd 2014
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

Sure... rolling closing costs into your loan is a very popular option. Rolling the costs in can NOT be an afterthought. It has to be handled through the purchase agreement under what is known as seller paid closing costs. There are limits, and lots of rules, so be sure to talk to your Loan Officer to make sure it is handled correctly. Lending in MN, WI, and SD... www.MortgagesUnlimited.biz (651) 552-3681

Sep 22nd 2014
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Michael Patterson (MichaelPatterson)
#55 ranked lender in Washington - 71 contributions

There are some Down Payment Assistance programs available that can help cover your down payment, closing costs, pre-paid items, impounds for taxes & insurance, etc... These are not restricted to first time homebuyers either. There are some income restrictions on the programs, but there are various options for FHA, VA, USDA, and Conventional for clean credit clients. There are even some with grant funds that even don't have to be re-paid after closing. The rates are higher as an offset to participating in the programs, but it can be a good way to get into a home which wouldn't be accomplished otherwise. On a standard loan scenario out there, we can all admit to ourselves that there's "no free lunch" and any lender advertising "zero closing costs" is essentially achieved by rolling them in with a higher interest rate offered... With the new lending laws, "rebate" is applied towards the borrower's closing costs when a higher rate than "par" (even) is chosen. (Alternatively, paying discount points lowers the rate for a fee, which is a percentage of the loan amount, increasing the up front cost.) This is in your control somewhat, depending on your other qualification factors like debt-to-income ratios, and realistically, if it even makes sense to do so. There are always legitimate 3rd party fees, such as appraisal, title, escrow, recording, credit reports, etc... in addition to any lender processing or underwriting fees. The closing costs have to either be paid up front by the buyer or seller... or absorbed by a lender credit. As discussed here, there are options to have the seller pay the closing costs if worked into the home purchase negotiations up front. No underwriter wants to see an after the fact increase in sales price to include seller contributions. If you want more specific options for your scenario, please feel free to reach out - no obligation for "2nd looks" at your current financing approvals.

Sep 22nd 2014
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