So, I have this friend who works at a bank. I figured she'd make a great resource with the process, working in a financial institution and having gone through the process herself. So I gave her the rundown on where I was and how far along in the process I am.
So far I seemed to be right on the money, trying the credit union first for the mortgage, what kinda things will be required of me to qualify, the type of loan I'd need, stuff like that. But then there's the bad news. I'd need more like $6,000 and not the ~$3,000 I have. Closing costs increase the amount of money you need up-front to buy a house.
So here I am with cash to put down on a house, but not enough to pay those damned closing costs. Whatever shall I do? Well, I can try to find more money, but that might be tough. When it comes time to close, I'll have a little more money, but not enough to cover that wide a gap.
Can I just pay the closing costs and not put any money down? I'd heard of people doing that before, but that's part of what's caused the economy to go down the toilet, so you can't do that anymore.
How about rolling the closing costs into the loan? Not exactly. I can't do it myself, but if the seller were to pay the closing costs, then add that onto the sale price of the house, which will in turn roll it into the mortgage.
So it's not great news. Although I kinda expected something like this, I still feel confident that I'll make it through the process. And with this being a buyer's market, I'm certain I'll find a seller willing to work with me to get the house of of their hands and into mine!
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