Closing Costs Dilemma
Hi Newbie kind of....Need advice on a deal I have coming in sept - Bought a house and I am waiting for my seller to close on this house - she is 1031 ing - While waiting my Re agent has a buyer for this house for $80K more than I paid - I want to avoid closing costs by bringing cash to the table - What kind of rates can i expect on bridge loans... or any other loan ideas welcome- Already have 2 crdit lines in position 1 &2.... :-(
Thanks for your post. Being in the lending industry myself, i can assure you that there is no way to "avoid closing costs". Closing costs will be attached to any loan that you do. You being the seller will have much less than the buyer of course, but since you will be making a decent profit on the property, don't be unwilling to pay for some of the cost's of the sale...i.e. title charges, appraisal, etc...
Bringing cash to the table does not make you exempt from paying any closing costs though. When buying a home, it will absolutely lower your rate (depending on the type of financing; subprime, or prime) or will make it easier to aquire the subject property. Clsing costs are so every party that is involved in the loan get's paid. Including the loan officer who takes his/her time to do this for you. When looking at you clsoing cost's here is a good formula to remember. If the closing cost's are high and you want them lowered, expect your rate to go up. If your closing cost's are low and you want a better rate...don't even ask. Normally when closing cost's are low it means that the loan officer has sold a higher rate of interest so that the cost's on the loan are lower. This is not all that bad, although sometimes if you take the higher cost's on the loan and allow the loan officer to charge most of their fee (origination fee) onto the cost's of the mortgage, your payment will be much lower. Remember this, your closing cost's can be recouped, your interest rate stays forever until the loan is paid off through any means. :-D
[addsig]
Thanks for your post. Being in the lending industry myself, i can assure you that there is no way to "avoid closing costs". Closing costs will be attached to any loan that you do. You being the seller will have much less than the buyer of course, but since you will be making a decent profit on the property, don't be unwilling to pay for some of the cost's of the sale...i.e. title charges, appraisal, etc...
Bringing cash to the table does not make you exempt from paying any closing costs though. When buying a home, it will absolutely lower your rate (depending on the type of financing; subprime, or prime) or will make it easier to aquire the subject property. Clsing costs are so every party that is involved in the loan get's paid. Including the loan officer who takes his/her time to do this for you. When looking at you clsoing cost's here is a good formula to remember. If the closing cost's are high and you want them lowered, expect your rate to go up. If your closing cost's are low and you want a better rate...don't even ask. Normally when closing cost's are low it means that the loan officer has sold a higher rate of interest so that the cost's on the loan are lower. This is not all that bad, although sometimes if you take the higher cost's on the loan and allow the loan officer to charge most of their fee (origination fee) onto the cost's of the mortgage, your payment will be much lower. Remember this, your closing cost's can be recouped, your interest rate stays forever until the loan is paid off through any means. :-D
[addsig]