Pay Less Out-of-pocket at the Closing Table
In addition to your down payment, you’ll be responsible for paying closing costs — the fees that CrossCountry Mortgage, Inc., doing business in the State of New York as CrossCountry Financing, and other parties charge as part of the home financing process.
These fees may include:
- A loan origination fee
- Loan discount points
- Appraisal fees
- Credit report costs
- Taxes and insurance
- Title fees
- Recording fees
- Funding fees for specific programs
Fortunately, a variety of purchase programs allow you include these costs in the loan or negotiate with the seller to pay them for you.
With an FHA home loan, you can finance your closing costs or negotiate with the seller to contribute toward them. However, the seller can only contribute up to 6% of the lesser of the home’s sales price or appraised value.
In addition to great benefits like 100% financing and flexible credit requirements, you may be able to finance the closing costs associated with a USDA rural home loan (depending on the appraised value of the property).
A VA home loan provides great benefits for those who’ve served, such as 100% financing and no mortgage insurance. You can also negotiate with the seller to determine who will pay closing costs. You can pay them, the seller can, or they can be shared. However, the only financeable closing cost charge is the VA Funding Fee. All other closing costs must be paid at closing.
Most refinance loans in the above programs allow closing costs to be financed. If you still have questions about closing costs, don’t hesitate to contact us today. One of our licensed loan officers will be happy to walk you through the process and inform you on your options.