Can Closing Costs Be Included In A Conventional Loan in Bakersfield?
When we talk about saving money to buy or refinance a home, most homebuyers are focused on the down payment. You have to keep in mind that there are closing costs you need to settle on closing day. If you plan to buy a home in the zip code 93309, you need to understand closing costs and how much you need to save to pay for them.
Closing costs are fees borrowers pay to cover property insurance and mortgage costs during loan processing.
How Much Do You Pay For Closing Costs?
When applying for a mortgage, Accelerated Lending Group of Bakersfield, CA, can assist you with the whole home buying process.
Closing costs will vary but are typically between 3% to 6% of the purchase price. This means that on a $300,000 mortgage on a home, you may pay between $9,000 to $18,000 in closing costs.
When Can You Include Closing Costs In Your Loan?
You might have heard somewhere that closing costs can be rolled into a mortgage loan, but this is not always possible. If you don’t have enough cash to pay your closing costs up front, you may include them in your loan balance if you are refinancing your loan.
A USDA loan allows you to roll closing costs into your loan when your home appraises above the purchase price.
On the other hand, for a conventional loan in Bakersfield, you won’t be able to roll the closing costs into your mortgage.
For Fannie Mae, Freddie Mac, FHA, and VA loans, the only way to not pay closing costs upfront is to have seller credit, meaning that the seller agrees to pay the costs in exchange for selling the home above market value.
Another possibility is with lender credit, wherein a lender agrees to pay for closing costs in exchange for a higher interest rate.
Need to learn more? A mortgage broker from Accelerated Lending Group can assist you with all your questions regarding the loan application process.
Do You Need Assistance With Your Conventional Loan?
Are you ready to get started on your loan? If you are looking for the best service and mortgage rate in Bakersfield, look no further. Get a conventional home loan from Accelerated Lending Group and close that deal on your dream home.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.