Does it cost borrowers with credit problems or bad credit more for closing costs than it costs borrowers with good credit?
In most cases, it should not. Closing costs for folks with credit problems can be kept down by involving the right wholesale mortgage lenders and wholesale oriented agents approved by those lenders. Usually, closing costs should be about the same as it would be for someone with good credit. However, with serious credit problems, wholesale lenders will compensate some of the risk by increasing rates somewhat and/or with an increased APR that will reflect an increase in closing costs to some degree.
