If you need help covering your "closing costs" (fees outside of your down payment) which is more important to you than the monthly payment or interest rate, then asking for a lender credit may be something you will want to review.
How do these work exactly?
Well, when you take out a mortgage, there are costs associated for all involved to create and process the mortgage as well as the title company.
You have to pay for things like title insurance, escrow fees, appraisal fees, credit reports, taxes, insurance, and so on.
Lenders understand this, which is why we offer credits to cover many of these costs.
This reduces your total out of pocket burden.
However, when you select a mortgage that offers a credit, your interest rate will be higher to absorb those obligatory costs (creating a slightly higher monthly payment).
This is exactly why it is very important to have a full mortgage strategy, knowing when you may sell or refinance later, while crunching the numbers of total cost over time so you can make the most informed decision for you!
If you'd like to learn more, just shoot me a message, or send an email and I'll be happy to help further.
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