Regardless of whether you are buying a home or refinancing in a loan with or without closing costs – you still have to qualify. Certain credit, income, asset, and loan-to-value standards will always be required.
Sometimes people call and accuse us of false advertising, declaring ‘I couldn’t get a no closing cost mortgage.’ Well, you know what? Someone who doesn’t have a driver’s license isn’t allowed to drive either. Simple common sense dictates that you have to qualify for a no closing costs mortgage. You have to make a certain amount of money. You have to have a certain amount of credit. You have to have a certain level of assets. Otherwise it’s impossible to get these deals done. This is simply the bottom line! You can’t expect to get a mortgage if you don’t qualify or if you are not a candidate. You can’t have a bankruptcy and tax liens all over the place and expect to get a mortgage with no closing costs or any mortgage for that matter. So quite simply, not everyone can qualify for every mortgage, and a lot of people don’t qualify for any type of mortgage at all.