Get Away From Housing Closing Costs! Tips For First Time Home Buyer Mistakes With Jennifer Beeston

All About Closing Costs. Yes, You Need to Pay Those Unless…

So i was talking to a borrower yesterday and we were talking about closing costs and he was really concerned because he’s like well i don’t really have money for closing costs i only have money from my down payment he had been saving for a couple years and because of that you know he had enough to buy the house with a down payment but what was he gonna do about

Closing costs and depending on where you are in the country closing costs can be anywhere from 2% to 5% loan amount plays a huge role in this as well okay so it’s very important to ask if you’re getting pre-qualified what are expected closing costs you know we have a tool that we use with our system called smart gfe which gives us a rough estimate of what to expect

In the area for third party fees like my fee i always know what it is but title and escrow or attorneys it varies so you want to talk to your lender about closing costs now what’s important to know is that you can ask the seller to cover your closing costs a certain percentage so let’s say and there’s different charts based on how much you’re putting down that you

Can ask for and how much is realistic to get realistically i don’t see people get credits over 3% much i can see up to 3% quite a bit over that it’s like 1 in 50 so let’s just use 3% as an example let’s say that you’re buying a $300,000 house and you’re asking the seller to cover 9,000 of your closing costs now if you’re in california that should definitely cover

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It you should be fine now if you luck out in your closing costs are only $8,000 you’re probably thinking awesome i can get a refrigerator i can get a washer and dryer because best buy is gonna have a sale for presidents day or whatever holiday it is labor day no you can’t so if you have in your contract which is what you want to go for seller to credit buyer 3%

Towards closing costs and there’s $1,000 leftover you don’t get it i don’t get it either it goes back to the seller and the reason is is that if it was given back to you it’s include it’s considered incentive to buy which is a loan no it’s a you cannot have the seller give you money that looks like it’s incentive by and it’s not like i can put a refrigerator or

Some of these other things on the closing statement so it’s important to know if you have money as a closing cost credit it needs to be spent so your lender will look at buying down your rate it’s not uncommon that we can’t spend the whole thing we do our best but at the same point i’m not gonna lie to a client and be like oh yeah i can get your rate down an eighth

By charging you this like if i can’t get the rate down for that we’re not going to talk about it if i can’t you know we’re not gonna pad our fees it’s not like all of a sudden we’re gonna go oh actually i got charged more money there’s not a lot of stuff that i can inflate you could add a homeowners warranty that’s a great use of it there’s a couple things you

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Can add but it’s not a lot of stuff so you just want to make sure that if you get that closing cost credit and it looks like you’re gonna have money left over if you don’t you don’t it goes back to the seller so that’s important um but the good news is look you can ask for it and in a market where it’s really competitive and there’s like thirty offers yeah you’re

Probably not gonna get it but in a market where it’s slower moving you know there’s a lot of markets across the country where it’s normal for a house to sit on the market for six months to a year it’s often in the sellers best interest to take your offer with a closing cost credit rather than reduce the sales price so keep that in mind it’s a really good option and

Way to get into the market a little bit sooner and then sometimes it’s just a nice way to structure your finances like i have borrowers that ask for it even when they don’t need it because they would rather have their money in a cd or they don’t want to take more out of retirement or 500 different reasons so i hope this videos been helpful as always i do mortgages

This is what i do i do purchase mortgages i do refinance mortgages call me email me smoke sign me i am licensed in a ton of states and i’d love to help you out thanks for watching

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Get Away From Housing Closing Costs! Tips For First Time Home Buyer Mistakes With Jennifer Beeston By Jennifer Beeston

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