What to Know When Exploring Loan Costs

You can usually shop separately for some of your closing costs. CFCU allows you to shop for some services. Comparison shopping for those services can help you save money. You'll shop for services later on, once you've chosen a home and a mortgage plan. 

The Annual Percentage Rate (APR) helps you compare options. The APR is a helpful tool for comparing loan options with different interest rates and fees. It takes into account both the interest rate and fees, so you can see which loan is less expensive over the full loan term. 

Sometimes. the seller may pay some or all of your closing costs, but that doesn't mean the closing costs are free. You would need to negotiate directly with the seller-not CFCU-for the seller to pay some of the closing costs. Depending on the particular market, sellers may be more willing to pay for some of your closing costs. Typically, sellers might agree to pay closing costs if: 

  • You have agreed to pay more for the home. A seller will usually require a higher purchase price if they are paying for the buyer's closing costs. For example, a seller might agree to sell the home for $200,000 and contribute $4,000 to your closing osts. But if you did not ask the seller ot contribute to your closing costs, the seller would probably have accepted on $196,000 for the home. You're still paying the $4,000, just as part of your loan instead of as closing costs. Be aware that in this type of situation, the home may not appraise for $200,000, which could cause problems for your loan. 
  • The home needs repair. If your home inspection shows that there are costly repairs that need to be made, the seller may offer to contribute to your closing costs instead of making the repairs or reducing the sales price. This reduces your costs at closing, but it doesn't reduce your overall costs-you will need to spend the money to make the repair yourself after closing.