Is it very common for buyers to roll part of their closing costs into their mortgage?
Even if I rolled all of my closing costs into the mortgage it will still be well under my approved amount and I can't imagine the LTV would suffer much either as we are only talking 3,500.00.
And it still would keep me under my max approval amount by 13,000.00!!
Would they have to run my credit score again to do this or since I was already approved for an amount, would it just be a matter of changing the loan amount on the paper?

Thank You Thank You!!

While I can't be sure since I don't know the type loan or program you have, raising the loan amount to cover closing costs would generally not require a repull of credit. Assuming the program you are in allows rolling in CCosts (most do, typically up to 3% of the P Price for conventional and 6% for subprime loans and most gov't programs) it will cause your loan to go back to Underwriting (Automated or manual). It probably won't effect anything unless it causes you to change brackets (again depends on the program) i.e. 78% to 81% and the same for Debt to income ratios. Most programs have brackets in 5% increments, so if you are at the very top of your existing bracket, the loan increase may cause an increase in rate or possibly mortgage insurance, otherwise you should be fine. Ask your broker or lender to be sure.

You can definitely have this done. I usually do this with about every loan that I do. But you have to stress this when you first file out the application. Clients love the fact of going into a home without any money down.

Hold on, if this is a purchase you need to consider something. If you are approved for 100,000, but you find a home that you want to buy for 95,000 thats great. Now if you are going to do 100% financing you would finance 95,000. If you then decide that you want to roll your closing costs you would be financing over 100% of the value of the home. Although you are approved for 100k the value of the home is only 95k so putting anything additional into the loan would be a problem. The alternative to this is 103% purchase program, tell your lender to find you one if you aren't looking to come up with any cash out of pocket. Also, you should have the seller be paying closing costs in this kind of market.

So many folks get financing closing costs on a refi confused with a purchase transaction and think that you can finance CC on a purchase. As you can see from the responses it appears even some mortgage people get this mixed up. The only way to finance CC in a purchase is as Adam mentioned to find a lender/program that will finance over 100%.

Hers's why. In a refinance there is equity remaining, equity that can be used to finance the CC. In a purchase there is either no equity (100% financing) or the buyer is providing the equity through their down payment. You can't use down payment funds to finance CC, that would simply lower the down payment.

I think the OP is confused because she is approved for up to a certain loan amount and plans on buying a home for less than that amount and thinks she can use the excess to finance her CC. What she must understand is that the purchase loan LTV is calculated on the contract price or the appraised value, whichever is LOWER. You don't get to borrower the max of what you are approved for unless the property's contract sales price is that much.

As Adam again mentioned the way to get some or all of your closing costs covered on a purchase is through seller concessions which are huge in a buyers market or find a program that will finance more than 100%. The second choice is not as good of one as 103% and 107% programs are much harder to qualify for and come with higher rates.

Golden!

What he said...