3 tips for a no closing costs mortgage are fairly simple and can be used in almost all cases when purchasing a home. One of the three can be used for a NO Closing cost refinance. When purchasing you want to rely heavily on your Real Estate Agent and expert Loan Officer to write up the contract with the correct terminology and figures. To see some of our low down payment options CLICK HERE
Here are the 3 ways to get a No Closing Cost Loan:
1. Make the seller pay them. When you make your offer all you have to do is make it contingent on the seller paying all the closing costs. For instance if you were making an offer for $300,000, next to the offer amount you would write in “seller must pay all buyer closing costs”. It’s that simple.
Will the seller always agree? OIf course not. However, it’s common practice to make this request. If they don’t agree to pay all of them they often agree to pay some. If they only cover some of the cost we have a solution to get the rest paid.
2. Make the lender give you a credit to cover the closing costs. This is possible on most loans. many people understand how paying points to lower your rate works. If you want a lower than market rate you can pay additional closing costs, called points, to artificially buy down the rate. What most don’t realize is you can do the opposite of buying down the rate to get a credit which will help get you a NO Closing Cost Loan.
If you chose a rate that’s higher than market rate, it will generate more revenue for a bank. Most times they will pocket that money and make more profit. At Coastlend Mortgage we will give you that additional profit back in the form of a credit to help cover closing costs and give you a NO Closing Cost Mortgage. Lets say you have a $300,000 mortgage and you qualify for 4.5%. If you increase the rate to 4.625% or 4.75% the payment won’t change much and (depending on your credit scores) you can get several thousand dollars in credits to offset the closing costs. In many cases it’s enough to pay all the closing costs and have a NO Closing Cost Loan.
3. The last way is a combination of the first two options. If the seller only agrees to pay half of the cost, then you can use the slight rate increase to generate enough credit to cover the rest. In this scenario the rate increase will be less because you won’t need as much to pay al the closing costs. Therefore your payment increase will be minimal.
For more information or if you have questions feel free to visit Coastlend.com or call 843-388-5763. You can find out what you qualify for in just 1 minute by clicking here: Apply Now