| You want to buy a home but you do not have money | | | | anywhere from a couple of thousand dollars to tens |
| for a down payment or for closing costs? Well, just | | | | of thousands of dollars depending on the value of the |
| forget it. At least that is what you have probably been | | | | home, the size of the mortgage and other variables. |
| told by people who think they know what they are | | | | You do not necessarily have to pay closing costs out |
| talking about, but simply do not. | | | | of your pocket. |
| There are many loan packages available for people | | | | There are loan packages available for people that are |
| with no money to put down on the home or for closing | | | | not able to pay closing costs out of their own pocket. |
| costs. The home loan industry has undergone | | | | What these packages basically do is inflate the |
| revolutionary changes over the last ten to twenty | | | | purchase price of the house by the amount of the |
| years. No longer is it true that you need to put down | | | | closing costs and then have the seller pay the closing |
| 10% and have enough money for closing costs in | | | | costs for the buyer with those extra funds. So, for |
| order to buy a home. The simple fact of the matter is | | | | example, if the purchase price of the house is $100,000 |
| that there are home loan packages that can get you in | | | | and closing costs were calculated to be $4,500 the |
| a home with no money down, or very little. | | | | contract would read that the sale price is $104,500 and |
| Let us first examine the down payment. A down | | | | would include language that the seller is to pay $4,500 |
| payment is the amount of money towards the | | | | worth of closing costs for the buyer. The seller still |
| purchase price that you pay out of your own pocket. | | | | gets the $100,000 for the home and the additional |
| Typically people put between 5% and 10% down on a | | | | amount that was financed goes towards the |
| home when they sign a contract. This is not a legal | | | | purchasers closing costs. |
| requirement, but rather an established tradition. If you | | | | Different states have different rules on how the |
| find a buyer who does not require a down payment | | | | language must read and what closing costs can and |
| on contract and you are approved for a loan with | | | | cannot be paid by the seller. You will want to make |
| 100% financing, then you need not pay anything out of | | | | sure you have a full understanding of this process and |
| pocket. | | | | how this will work under you specific circumstances. |
| But, just how do you do this? The first thing you need | | | | Believe it or not, there are loan packages available that |
| to do is meet with a mortgage professional and get | | | | combine both of these examples - no money down |
| that aspect of the process completed. You will want | | | | and no money for closing costs. The property will need |
| to have a pre-approval or even a mortgage | | | | to appraise at a specified amount in order to qualify |
| commitment with contingencies based on home value | | | | but the key is understanding that this very much can |
| and selling price. Armed with this, you will be in a better | | | | be done. It can turn a renter into a homeowner with |
| negotiating position to get a seller to agree to sell their | | | | nothing out of pocket and perhaps even a reduced |
| home with no money down. Your lender also may be | | | | monthly payment. Mortgage payments can be at or |
| able to refer you to real estate agents that can help | | | | below rent payments depending on the home you pick. |
| you find a home that you can purchase with no | | | | Today's home loan industry is competitive. There are |
| money down. Again, there are no legal obligations to | | | | packages available for most people no matter what |
| put money down, it is rather just custom and tradition. | | | | credit history they have or what funds they have |
| With the right mortgage lender and real estate agent | | | | available for the down payment and/or closing costs. |
| you will be able to purchase a home without any | | | | Rather than deny your own mortgage application, |
| money out of pocket. | | | | speak to a mortgage professional to determine if you |
| Aside from the down payment you have likely been | | | | can begin realizing your dream of homeownership and |
| told that you will not be able to purchase a home | | | | a brighter financial future. |
| without money for closing costs. Closing costs can be | | | | |