Credit Card Use

I know this is a wierd/stupid question? But I need to know. lol

When using a credit to pay any closing costs, how is this actually done? Is there a place on the contract for the card # ??? When use a card at closing. What typically are the costs that are being covered, in anybodies past experinces? Just looking to see how this is done at closing. Thanks, Joe.

Howdy JoeDC:

I do not believe title companies actually accept credit cards. I have never seen one at least. There are several ways to get the money to take to the closing. The easiest is an ATM machine or at the bank with a cash advance. Another idea is to pay some of the sellers personal bills outside the closing or even at the closing or buy something they need at or after the closing.

As far as what costs are covered. Any could be covered with the cash advance or any other method too. You would get a credit on the closing statement that would say $ xxx paid outside closing. You may be able to pay costs like inspectors, appraisals, surveys directly to the vendor too with a cc. I know one investor that had cash advances of $25,000 on several cards and has bought several properties with his cc.

Hope this helps a bit

Ted, Thanks for responding. Thats a big help. Joe.

Before a college student decides to apply for a student credit card, they should know the basics of credit and how it works. Credit should be taken very seriously and not “applied for” because someone on a college campus is offering you a Frisbee if you apply for their credit card. You can apply for first time student credit cards at your convenience, when YOU are ready. We recommend you learn the basics of building GOOD credit before you apply for any student credit cards. A credit card might just be putting the cart before the horse. Be careful when you build your credit as it WILL come back to either haunt you or help you.



Cash Surveys

In my experience, the title company wants a cashier’s check for any amount over $1000. Smaller amounts due at settlement, I have paid with a personal check, but it depends upon the title company policy. None I have dealt with would accept cash.

If you have enough credit available on the card, just go to the nearest bank and take a cash advance (or write a check from the card and deposit it). Then use the proceeds to get a cashiers check from the bank for closing costs. Make sure that you pay it back asap.