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VIDEO: 3 Options if You Need Help Paying Closing Costs

If you need help covering your closing costs, there are three options you can pursue.

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If you’re purchasing a home and you need help paying all the closing costs, here are a few options you can pursue to ease some of the financial burden.

First, you can ask the seller to pay them. For example, VA loans allow all parties of the transaction to contribute to closing costs. However, asking the seller usually comes at a cost. If you ask them to pay $5,000, they may raise the price of the house by $5,000. They can also just say no because it’s a seller’s market and they might not feel like they have to.

Second, you can ask your real estate agent to contribute to help you pay the closing costs.. However, keep in mind that they’re essentially working for free for you, so it might be weird asking them to cover a bunch of fees.


Asking the seller usually comes at a cost.


The third—and most common—option is to ask the bank. In my opinion, this is the best route to take because the bank is always willing to help pay closing costs. There is a catch, though: If they loan you money to pay your closing costs, they’ll also bump up your interest rate. In their mind, they’ll recoup the money in the long run, but what about you?

For example, let’s say the bank was going to give you an interest rate of 3.75%, and once you ask them to help cover your closing costs, they eventually agree to give you $4,500 and bump the rate up to 4.125%. You might think it’s worth it so you can buy your house, but you need to calculate the long-term costs of your monthly mortgage payment increasing by $25, $50, or even $75 and make sure it doesn’t cost more than $4,500.

If you have any questions about this or any other real estate topic, don’t hesitate to give me a call. I’d be happy to speak with you.

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