Can I Put Closing Costs on a Credit Card?
Chances are, no. If you want to get a cash advance and have that money sit in your bank account for a while and “season” you could potentially do that. However, be forewarned that you would have to disclose that part of your “down payment” is borrowed and the lender might not like that.
We also warn buyers not to make any drastic changes to their credit while they are in the process of buying a home. For example, don’t buy furniture on credit, or clothes on credit. In fact, don’t use your credit cards at all for about a month between applying for a mortgage and closing on it. The reason for this is that there is usually a last credit approval done before funding during escrow. If your credit is already low or just average, this change in your credit situation might sink your scores lower than the lender wants to see and deny your loan on day 30 of escrow.
So, your best bet is to either get the closing costs paid by the seller and have the amount added to your loan figure or save up to 5% of the total purchase price before you decide to look for a home.
