If you're considering using a broker to help you with your mortgage, you may be wondering if you can get assistance with closing costs. The answer is yes, but it depends on the lender and the type of assistance program you qualify for. When working with a broker, make sure to get any agreement about not being charged for the costs of the credit report and appraisal in writing. You should also double-check that you won't be paying for these services.
One option for closing cost assistance is Fannie Mae's HomePath Ready Program. This program offers buyers up to 3% of the purchase price when buying a property owned by Fannie Mae. However, not all lenders work with this type of assistance program, so you'll need to find one that does. Closing costs can include legal fees, loan origination fees, credit report fees and mortgage application fees, as well as the cost of title insurance, title search, home appraisal, mortgage insurance and more.
In some cases, your mortgage lender may even add extra time to the approval process to make sure everything is in order. Another option is the Mortgage Credit Certificate (MCC). This program makes homeownership more affordable for first-time buyers by reducing their federal tax liability. The lender who qualifies you for the mortgage loan will also determine your eligibility for a homebuyer assistance program.
Real estate agents and mortgage brokers often have a network of lenders who work with payment assistance programs.