These days, we use credit cards to buy everything — groceries, clothing, home improvement items … The list is endless. Have you ever wondered if you could use a credit card to purchase a home?
The answer to this question isn’t a shock. No, you can’t put your next home on your credit card. With high interest rates, extra fees and credit limits, it doesn’t make sense. Plus, that’s why we have mortgages!
Before you put your credit card away, here is a bit of info that might surprise you: At MortgageDepot, we allow borrowers to use a credit card to cover a portion of their closing costs!
We understand that closing costs aren’t cheap. If you can use your credit card to fund a portion of your closing costs, it might put you one step closer to reaching your real estate goals.
Covering Closing Costs With a Credit Card
Before we talk in depth on this topic, we want to remind you that this is not a good idea for everyone. Our experienced loan officers will help you determine if this is your best path to home ownership.
If using credit is a reasonable option for you, here’s a bit of good news: Our borrowers can put a maximum of 2% of their loan amount on a credit card to cover customary closing costs. To do this, they must meet one of the following requirements:
- The borrower must have enough reserves to cover the charged amount.
- The debt ratio must still be low enough to qualify for the mortgage with the updated credit card payment.
Other Ways To Use Your Credit Card
There are lots of expenses associated with purchasing a home. After you sit down with our loan professionals, you might find that it’s a better idea to pay for closing costs in another way and save your credit card for the other expenses that pop up. If money is tight at closing, here are a few ways that you can put your credit card to work:
- Appraisal fees
- Inspection fees
- Cleaning costs
- Repairs and renovations
Contact Us Today!
At MortgageDepot, our goal is your real estate success. Trust us to give you honest feedback about the best way to pay for your closing costs. Give us a call today to discuss your options!
Contact one of our loan consultants to learn more.
Have questions or need help?
Call us now at 800-220-LOAN
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