FAQs
faqs
Frequently Asked Questions
An FAQ page is a time-saving customer service tactic that provides the most commonly asked questions and answers for current or potential customers.
What is a no closing cost mortgage?
A no closing cost mortgage is a mortgage loan where the lender pays the typically required closing costs on your behalf. This can save you several thousand dollars compared to traditional financing with closing costs. GoNoCost Mortgage believes so strongly that this is the most consumer-friendly way to finance a home that we made it our name!
Aren’t you just rolling the closing costs into my new loan amount?
Not at all! With a true no closing cost loan, we pay the closing costs on your behalf in exchange for a slightly higher interest rate. Other lenders muddy the water by using phrases like “no costs out of pocket” or “no-fee loan”, but they’re not doing what we do! When you hear “no costs out of pocket” it generally means the costs are being rolled into the new loan (so you’re borrowing more money to pay the costs, then paying interest on that extra amount for the remaining term of the loan). A “no-fee loan” means the lender is not charging an origination fee, but you’re still required to pay the third party fees such as appraisal, closing attorney, title insurance, etc., which can add up to thousands of dollars. Neither of these is a true no closing cost loan like that offered by GoNoCost Mortgage.
What do I need to apply?
To apply using our simple online application form, we recommend you have access to the following:
- A separate email address for each person that will be on the loan
- Your online banking username and password, or details about how much money is in each account you want us to consider for your approval (e.g., checking and savings accounts, retirement accounts, stocks, and other assets)
- Your income and employer information
- Your Social Security number
What credit score do I need to get approved?
You can get approved with a credit score as low as 580, as long as you meet our other eligibility criteria.
Keep in mind that the score we use might be slightly different from the one you get from your credit card company or another source. We use a FICO® Score, but educational sources might use a different credit scoring model, such as a VantageScore.
We still encourage you to apply even if you think your score is slightly below 580.
How will applying with GoNoCost affect my credit?
Your GoNoCost application may have a minor effect on your credit score. Checking your credit is a necessary step for getting a mortgage. It allows us to show you real mortgage options and interest rates – and get you approved.
You have a 45-day window in which multiple credit checks from mortgage lenders are recorded only once on your credit report. This is so you can shop around for a mortgage without your credit taking a big hit.
Does everyone qualify for a no closing cost mortgage?
The significant majority of applicants qualify for no closing cost financing. However, there are some situations where a no closing cost mortgage is not an available option. One of our experienced loan officers will be happy to provide a no-cost, no-commitment evaluation of your situation. If a no closing cost loan isn’t available, we’ll let you know other available options, all with a mind to save you as much money as we can.
Why would I pay a higher rate to get a no closing cost loan?
This is best explained by an example, and while these numbers may not reflect what you would receive on your specific loan, they are a good representation of what we often see. Let’s say closing costs are $5000. The interest rate on a no closing cost loan might result in a monthly payment that is $60 more per month than the payment with the lower rate that has closing costs. It will take you seven years of saving that $60 per month just to recover the up-front closing costs. That “break-even” period is even longer when you consider what you could do with $5000 other than paying closing costs. Since the average length of a mortgage is less than four years, most people come out ahead with the no closing cost option. Our team can work through your specific numbers and help you make the decision that is right for you.
Will I need any money at closing if I choose a no closing cost mortgage?
With a no closing cost mortgage, GoNoCost pays your typically required closing costs. However, there are other items that are not considered closing costs. These include your down payment (on purchase transactions), funds to set up your escrow account, pay for insurance and interest, and any optional items like a survey or home inspection. We believe in full transparency, so for a detailed explanation, click here.
Can I pay the closing costs and get a lower rate?
Absolutely! While we don’t believe this is in most of our customers’ best interest, we’re happy to structure your mortgage the way you believe it works best.
What areas does GoNoCost Mortgage serve?
GoNoCost is a Mortgage Lender based in Raleigh, North Carolina, and also serves South Carolina and Virginia with a management team that has a combined 75 years of lending experience. Currently GoNoCost is only available throughout North Carolina, with expansion into other states coming soon!
What kind of loans can I get from GoNoCost?
GoNoCost Mortgage provides a wide variety of residential mortgage products. One of our expert loan officers will help you determine which loan product works best for your personal situation. Our offerings include traditional conventional, FHA, VA, USDA, and jumbo loans as well as specialty loans such as down payment assistance programs and loans for medical professionals.
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Financing your home is easy. Refinancing it is even easier. You just need to find a transparent lender or a reliable online mortgage advisor to guide you throughout the mortgage financing process. GoNoCost Mortgage has those people.
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