Good Morning!
When you buy a house there are three sets of funds you generally have to bring to the table…
1) Your down payment.
2) Your closing costs.
3) Your prepaid taxes and insurance.
As far as numbers 2 and 3 (closing costs and preaids) there are five ways that you can arrange to pay these costs.
1) You. …You are the borrower and you can pay these expenses yourself.
2) The seller. Depending on the market you are in the seller’s may be willing to help you. You will just have to talk to your realtor about a strategy.
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 us 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.
If you or someone you know has a question about how to structure purchase financing please give us a call or shoot me an email. We want to help you!
That’s it for today!
Have a good day today! …and thanks for reading.