Can we include closing cost into the overall loan?

No, you can't borrow closing costs but lenders can help pay those costs for you which means a higher rate. The way most people handle this is to negotiate for the SELLER to pay your closing costs which is allowed subject to limitations based on the type of mortgage and your downpayment %, and of course subject to the appraisal working out. When the seller pays the costs for you that effectively allows you to borrow the closing costs which is less expensive in your monthly payment than a higher interest rate.

You can try and get a sellers concession which will allow you to finance in your closing costs, but that defeats the purpose of putting as much down as it will raise your loan amount. More information is needed to give you the best advice, but at a glance I would say to pay your closing costs out of pocket and put less down, it will most likely be the best way to go. Again would need to know your entire situation to be sure. Good luck!

No.. but you can ask the seller to contribute, your Realtor can contribute, or your loan officer can contribute.. if non are willing to do that, then you have no choice to use some of your funds to pay the costs.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com