Finding a way to save a down payment for a mortgage can be difficult, and closing costs add to the burden. Would you prefer a no-closing-cost mortgage? Lots of potential homeowners are interested in a no-closing-cost mortgage as a way to reduce their financial burden.
What Does The Loan Process Look Like And Who Qualifies?
To get an option with no closing costs, start by visiting a mortgage company, such as a banking institute. Discuss the fees associated with a home loan, and find out what it would be if you went with no-cost plans.
Lenders may look at a variety of factors when considering your application.
- Your Credit Score
- Credit History
- Existing Payment Plans
- Your Employment
What Types Of Closing Costs Come With A Mortgage?
Closing fees and expenses include banking and lender payments associated with completing the loan process.
An underwriter spends hours evaluating the various factors related to securing a financial plan.
Overall, the closing costs will be calculated based on the total value of your loan. Usually, these expenses average between 2 and 5 percent of the total loan amount.
What Is A No-Closing-Cost Mortgage?
A no-closing-cost mortgage sounds like you get to avoid paying those fees, which, however, is not true.
The truth is that you still have to pay the closing costs. But with a no-closing-cost plan, the expenses are combined with the total loan. As a result, you’re less likely to feel the financial pinch of paying a second down payment before you can move into your new home.
There Are Three Main Types of Mortgages
There are three main mortgage types that you can use to purchase a house. Each has pros and cons, so you should look at your specific needs and finances to choose the right loan.
You can apply a no-closing-cost loan to any of these types, though you’ll want to discuss this with your lender or broker.
What Is A No-Cost Refinance?
If you refinance a plan to have no closing costs, the amount of the closing costs are added in with the loan. Therefore, expect to pay additional interest and fees to refinance with no closing costs.
How To Get Your Closing Costs Waived
Closing costs cannot be waived outright. Either you pay for the closing costs when you close on your home, or you pay these fees throughout the lifespan of your mortgage.
Reach Out To A Trusted Home Loan Provider in Las Vegas
You can also work with a professional like Blackmon Home Loans. We are a local home loan and mortgage lender in Las Vegas, NV. Contact us today to request information about a no-closing-cost mortgage.