Closing costs question

How do you roll closing costs into the mortagage? Anyone do this? I am completely at a loss.

Thanks.

Re: Closing costs question

They can add it on top of the purchase of your home

if you home cost 250k and you have a mortgage loan for 265k and your closing cost is 17k you would have to come up with 2k instead of the whole 17k

Re: Closing costs question

When we put in our offer for our house, we asked for the seller to pay all closing costs, and he accepted, at closing we only had to pay about $300.

Re: Closing costs question

what youre looking for is called a sellers concession. basically, you ask the seller for permission to roll the closing costs onto your mortgage. its a common practice, however its very risky if you're a seller because it all comes down to the appraisal. for example, if you've agreed on $400k and you want a sellers concession to cover $15k of your closing costs you would then need the house to appraise at at least $415k. if it comes in just under then you as the buyer would have to come up with the difference. ONLY ASK FOR A SELLERS CONCESSION IF YOU HAVE THE FUNDS JUST IN CASE SOMETHING SHOULD HAPPEN. if you have absolutely no money for closing costs, then i wouldnt take the risk. a sellers concession, IMO, should only be used if you have the funds but want to try for it and save your money.

Re: Closing costs question

Thank you all for answering! We do have the funds but if we could roll the closing costs into our mortgage, we could put way more down and get a better mortgage rate.