$$$ For Closing! Suggestions, Please!
Here's the deal:
I have been approved by a bank to purchase the home I currently live in. The sale price is a whopping $380K and with my salary, it's almost a miracle that I secured a mortgage loan. My first problem is - I need about $10K at closing - I ain't got it! It was suggested that I take the money off of credit cards being that there will be no more credit checks by the bank since they have already approved my loan application. I am hesitating on doing this because that will give me more monthly debt on top of my new monthly mortgage which is extremely enormous! Are there any othere resources I should be tapping to get help with the closing cost? Closing is at the end of May, by the way. So your immediate input is GREATLY appreciated!
My second problem - After purchasing the home, I'd like to refinance in order to lower the monthly mortgage payments and soon after that, I'd like to flip the property and purchase another. How soon can I refinance/sell after purchase?
Thanks, guys!
Lisa
First...can you borrow or get gift monies from anyone? Also some realtors and mortgage brokers (I do this as a mortgage broker) will lend my commission and hold a note for small interest rate. You get your money for closing I get paid more. Its a win win. Can you borrow from your 401k?
Problem 2...make sure you have NO pre payment penalty. You can refi at closing even (so to say). But you can refi immediately.
If you dont own the property yet, why then do you not get the lower interest rate or program you want up front? Refi is just buying your property back from yourself. I dont know your credit score, but if you can, get an interest only arm.
Hope this helps.
I always build the Closing Costs in the Purchase price.
Instead of $300,000 Purchase price, use $310,000. Seller to credit to whomever the Buyer designates the sum of $10,000. (Keep this on a seprate addendum and don't disclose to lender.)
Hello Lisa,
As far as closing cost is concerned I know Realtors or Investors that ask the seller for a credit to pay for the closing costs even if you have to raise the purchase price like someone said previously.
Some banks require you to have the loan for a min of 6 mo called seasoning but in realty you can refinance the day after you close. But my question is why would you need to refinance to get a lower payment? You should initially get the good interest rates with the purchase loan...if your only going to stay in the house for a few years or even less...try going with an interest only loan which will give you the absolute lowest payment....What is the house worth currently since you want to flip it for a profit?
Quote:
On 2004-04-29 13:19, pmatheson1 wrote:
I always build the Closing Costs in the Purchase price.
Instead of $300,000 Purchase price, use $310,000. Seller to credit to whomever the Buyer designates the sum of $10,000. (Keep this on a seprate addendum and don't disclose to lender.)
Sorry for the newbie question but how does that work exactly? Would the seller pay for all costs? Some costs/fees are due before closing...
thx
Thank you all for your advice. Here is a little more information regarding my situation.
My credit score is 625
My income is only $50K
The home is worth $459K
The sale price is $380K with 5% down and 6% sellers concession.
I already $10K for a downpayment
There is no one I can go to for a gift to cover the remaining closing cost and I used my 401K for the downpayment.
Any suggestions? Advice? Donations?
This one is easy!
Redo your offer:
Sales price $400,000
Down Payment 5%
Sellers concessions 6%?? what are these?
A Separate Addundum has the seller credit "to whomever the buyer designates" the sum of $20,000. (Obviously, this is a person with a different last name, that you trust to sign over the $20K) You use what you need for Closing costs and pocket the rest.
I'm not so sure that your lender will not run a further credit check before funding. I've seen people go out and buy lots of furniture before closing on their new home and the bank pulls the loan because of the additional monthly expenses. They look at the borrower the day of funding - is my understanding. Any loan officers that can verify?