Generally when you buy a house you will have two sets of funds you will have to pay at closing.
Your down payment.
Your closing costs, and prepaid taxes and insurance.
Unless your getting a gift or grant you will have to pay your own down payment.
However, you don’t necessarily have to be the one to pay your closing costs and prepaid taxes and insurance.
In fact, there are five different ways these costs can be paid. I’ll go through each one here…
1) You. …You are the borrower, and you can pay these expenses yourself.
2) The seller. You can negotiate this into your offer with the seller.
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 to.
That’s it for today!
Have a good day! …and thanks for reading.