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Top Ten Ways to Get Cash
for Closing
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Do not pay excessive closing costs and/or loan fees. Avoid high-cost programs and
loan officers.
- Monetary gifts from family members are allowed. The temporary use of a family
member's money is acceptable, but repayment cannot be required by donor.
- Do not payoff debts that can be managed with your income and goals. Make the
minimum monthly payments and accumulate substantial savings instead.
- Sell an asset and keep copies of every document and check involved, including a
valuation of the asset, and proof of the transfer.
- You can borrow against an asset to cover down payment and closing costs as long as
the loan is secured and the monthly payment for the loan does not disqualify you for
the new house payment. For example, use a loan against your 401(k) account and pay
yourself the interest, or take out a secured loan against an automobile.
- Use a second mortgage through us or negotiated with the seller, in addition to the
first home loan. Loan programs have different limits, so check with us first.
- Negotiate with the Seller to pay your allowable closing costs and then you pay an
increased sales price (which you're borrowing against) to cover that Seller's
contribution.
- Use low-down payment programs even if you are able to put more down. (VA zero
down, FHA at 3% down, Conventional 3% - 5% down, etc.)
- Use a rebate (a credit) of discount fees to minimize your closing costs. If you can
afford a slightly higher interest rate on the loan, the rebate could even pay for some
or most of your closing costs.
- Get a friend or relative to allow a lender to "collateralize" their CD's or stock
certificates so you don't have to put anything down (zero down).
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