About Mortgage Closing Costs on a Home

Our no closing cost loans are just what they say they are, but you may need to bring funds to your home closing with DNJ Gateway Mortgage. Before your closing, you’ll review your transaction summary with your loan officer, who will let you know how much you will bring to closing and why. While they may have the appearance of mortgage closing costs, they are not.

When you finance your home through a DNJ Gateway Mortgage no closing cost loan, the money you bring to closing are NOT home closing costs.

These expenses are referred to as pre-paids, and they are either:

  • Interest you owe on your loan
  • Escrow deposits
  • 3rd party expenses not related to the mortgage

While You Bring Money to Closing it Comes Back to You in Two Ways:

  • You will not make a payment the month after you close
  • Your current lender will send back ALL the money in your current escrow account

The attorney must collect for the new escrow account whatever amount should be in that account at this time of year (pro-rated). You will receive a refund from your current lender for any funds they are holding in escrow for you (usually about 14 days after we close). There is also one month of interest collected at closing, but this is accounted for — you won’t make a mortgage payment the first of the next month.

Although some loan officers tell their customers they get to skip a payment when they pay mortgage closing costs on a house, it’s simply not true. No lender will give you a month for free! To skip a month, your loan balance would need to raised.

DNJ Gateway Mortgage does have a way for you to bring ZERO cash to closing, typically by simply adding the amount to your total loan balance. However, this is something to discuss with your loan officer, who will show you exactly where the funds are added.

Just How Much Money Will I Need at Closing for This Type of Mortgage Closing Costs on a House?

The final number on how much to bring will come from the attorney when a HUD-1 statement is completed. Up until closing we will have a good estimate, but will not know the exact amount.
The federal government made changes to the Good Faith Estimate (GFE) in 2010. It is important to note that the GFE form does not show the amount to bring to closing. That is why we provide a Transaction Summary Worksheet.

We will need to verify your payoff, your monthly tax and insurance amount, your closing date, plus the timing of your last payment. So while we provide a very a good estimate, it is not exact until the attorney has completed the HUD statement.

Have Questions about Mortgage Closing Costs on a House? We’re Here to Help!

Our loan officers are standing by to answer any questions you have about your mortgage closing costs on a house. If you live in Maryland, Virginia, North Carolina, South Carolina, Georgia or Florida, call us toll free at 877-9-NO-COST (877-966-2678)!

DNJ Gateway Mortgage proudly serves clients in Raleigh, Durham, Chapel Hill, Cary, Apex, Greenville, Fayetteville, Fort Bragg, Greensboro, Winston Salem, High Point, Wilmington, and Charlotte, NC, and surrounding areas. We also offer mortgages in South Carolina, Virginia, Maryland, Georgia and Florida.