3 Ways to Get Creative when Paying Closing Costs

Abstract

What Are Closing Costs? Closing costs are the extra expenses beyond the home's purchase price. How Are Closing Costs Calculated? Closing costs include all fees from your lender, as well as other third-party expenses. Pay closing costs upfront You can choose to pay the closing costs out of pocket-typically with a cashier's check-on closing day. Roll closing costs into your loan As mentioned above, you can choose to roll closing costs into your new mortgage loan. Creative Ways to Cover Closing Costs Knowing how to pay closing costs is one thing. You can cover closing costs by: Utilizing down payment assistance programs: These programs vary by state and even city and county, but there are hundreds of programs that provide closing cost grants. There is a number called "Cash to close" in the transaction, which combines all the closing costs and down payment money into one number.