When you buy a house there are three sets of funds you have to consider…
1) Your down payment.
2) Your closing costs.
3) Your prepaid taxes and insurance.
When it comes to closing costs and prepaid taxes and insurance there are five ways to pay these costs…
1) You. …You are the borrower and you can pay these expenses yourself.
2) The seller. You can negotiate with the seller to pay these costs at the time you make your offer.
3) Gift. You can get a gift from a family member to pay your closing costs. The guidelines are different with each program for gift giving – so check with me before you attempt to go this route to make sure it’s appropriate for your loan program.
4) Grant. If you have access to a state or government grant program you can use this to pay these costs.
5) Loan officer and/or realtor. You can get help with paying your closing costs and prepaid expenses from the loan officer, and the realtor can help as well.
That’s it for today!
Have a good day! …and thanks for reading.
