How Can You Cut Down Or Eliminate Your Closing Costs?
Posted on July 8, 2009
Filed Under Loans |
Welcome back!
Many veterans have the mistaken impression that the closing costs for a home loan are actually covered by a VA mortgage. This is not true, although you can do a number of things to either minimize or total eliminate many of your closing costs. Most notably, this effect can be produced by thorough structuring of the real estate contract that you obtain.
When you apply for a loan, the amount may be the purchased price or the appraised value of the house, which ever ends up being less in addition to a VA funding fee. This means that if you would like to have your closing costs to be included in the loan, you need to increase the price. More than this, you must include a stipulation in the agreement, which says that the seller will pay the closing costs and other pre-paid expenses equal to the increased price.
This will eliminate your closing costs. Your appraisal value must also equal the value of the increased price for you to benefit from this arrangement.
