closing costs Archives - Sonoma County Mortgages https://sonomacountymortgages.com/tag/closing-costs/ Mon, 19 May 2025 18:34:48 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://sonomacountymortgages.com/wp-content/uploads/2023/05/cropped-scm2-sonoma-cm-2-32x32.png closing costs Archives - Sonoma County Mortgages https://sonomacountymortgages.com/tag/closing-costs/ 32 32 How seller credit maximize your purchasing power on a conventional or FHA home loan https://sonomacountymortgages.com/2025/05/fha-conventional-seller-credit/ Fri, 16 May 2025 21:53:59 +0000 https://sonomacountymortgages.com/?p=518714 "How Seller Credits Can Help You Maximize Savings on FHA and Conventional Loans" explaining what seller credits are, how they can be used for closing costs or interest rate buy-downs, the FHA 6% seller credit allowance, and a comparison table of conventional loan seller credit limits based on down payment. Includes a pie chart showing a split of 3% used for closing costs and 3% for interest rate buy-down.Maximizing Your Home Buying Power with Seller Credits When purchasing a home, every dollar counts. Whether you’re putting down 3.5% with an FHA loan or opting for a conventional route with 10% or 20% down, understanding how seller credits work can be a game-changer. These credits can significantly reduce your out-of-pocket expenses, lower your monthly…

The post How seller credit maximize your purchasing power on a conventional or FHA home loan appeared first on Sonoma County Mortgages.

]]> The Risks of Chasing a Lower Mortgage Rate https://sonomacountymortgages.com/2025/05/lower-rate-risks/ Tue, 13 May 2025 18:08:25 +0000 https://sonomacountymortgages.com/?p=518685 When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.Why Chasing a Lower Mortgage Rate Can Backfire When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Real-World Scenario You’ve got an offer accepted on a house. You’re working…

The post The Risks of Chasing a Lower Mortgage Rate appeared first on Sonoma County Mortgages.

]]> How much are closing costs when you purchase a house? https://sonomacountymortgages.com/2019/01/closing-costs-home-buying/ Tue, 29 Jan 2019 20:00:05 +0000 https://sonomacountymortgages.com/?p=15818 how to time when to buy a homeWhen you purchase a house, you have a down payment and closing that must be taken into consideration. Closing costs on a home purchase akin to tax, docs and licensing when you purchase a brand-new car. Here’s how to plan and budget for closing costs so you can best determine what you’re borrowing power and…

The post How much are closing costs when you purchase a house? appeared first on Sonoma County Mortgages.

]]> How to figure out closing costs on a mortgage https://sonomacountymortgages.com/2016/09/how-to-figure-out-closing-costs/ Wed, 28 Sep 2016 00:25:52 +0000 https://sonomacountymortgages.com/?p=13214 Little lending nuances to get a mortgageClosing costs are a factor you must account for consider when taking out a mortgage to buy or refinance a home. Here’s what you need to know across the board… When can you take out a mortgage there’s fees that you’re going to pay to various service providers besides just the mortgage company. This includes,…

The post How to figure out closing costs on a mortgage appeared first on Sonoma County Mortgages.

]]>