Can I Get a Personal Loan for Closing Costs?
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Advantages of Using a Personal Loan for Closing Costs
No Collateral
Quick Approval
Disadvantages of Using a Personal Loan for Closing Costs
Affordability
HELOC Approval
What to Look For When Using a Personal Loan for Closing Costs?
Interest Rate
Loan Amount
Repayment Terms
Fees
What Are Some Fees Associated With Closing Costs?
Attorney fees: Attorney fees could be payable at the closing table if you hire an attorney that helps you navigate through the mortgage closing process Discount points: Homebuyers can pay discount points at the closing table to get a lower interest rate on the mortgage Government fees and taxes: Closing costs may include certain fees or taxes to a municipal or county government, including recording fees Origination fees: The lender may charge origination fees for processing your mortgage loan application Prepaid fees: These upfront costs at the closing table can include the initial payments for your homeowner’s insurance, mortgage insurance, and escrow fees Service charges: The lender may charge fees to cover the cost of certain services, including appraisals, credit reports, pest inspections, land surveys, flood determination services, and title searches Underwriting fees: The lender may charge underwriting fees for evaluating the risk of lending money to you
When Does It Make Sense to Take Out a Personal Loan for Closing Costs?
Applying for a Personal Loan for Closing Cost
The Takeaway
Frequently Asked Questions
About the Author
Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and currently serves as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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