Post # 1
I’m just curious when you have the seller cover the closing costs what that actually includes.
I’m aware of various costs when buying a house, but just curious what a seller might cover if you’re in a market where that is likely to happen.
Post # 3
Sellers won’t usually agree to pay for closing costs unless it’s a specified amount or percentage. Closing costs are different for everyone.
Our sellers agreed to pay $3000 towards closing costs. You could ask the sellers to pay 70% or something like that. So whatever was over that we had to pay. However, we got a first time homeowners grant so we didn’t pay much out of pocket.
Post # 4
I agree with this that’s usually how it works but speak to your realtor for a better idea of how it works in your area and the likelyness they will agree to pay any.
Post # 5
Where I am, you have to put in the offer how much you want them to cover (dollar amount). When we talked to our lender they said both conventional and FHA allow for 3% of the sale price covered in closing closts. Its called a sellers concession, so basically you want to buy a 100k house with 3% sellers concession, so the sellers would actually only get 97k. Its basically like financing the closing costs, because instead of them paying the costs you could buy the house for 97k. Like everything else with home buying, its confusing haha.
Also, say the closing costs are less than the sellers concession, the extra money can go toward your escrow account for insurance/ prepaid taxes
In our preapproval, we got quoted approx. 5000 for closing costs on a 200k mortgage. But do your research on lenders because our credit union will cover about 500 of it since were first time home buyers.
Post # 6
That makes sense!
I’ve never heard of a lender here covering any costs other than actually the appraisal. Ours wouldn’t even do that, and it was just an auto one that we’re stuck paying for. Our rate and prepayment privileges are good though, so I guess it’s a tradeoff.
Post # 7
Our seller refused to pay closing costs.
Post # 8
Try a credit union. We used Navy Federal (who unforunately have AWFUL loan officers) but they gave us a $2500 grant because we were first time homeowners. That grant and the loan interest rate were worth the poor communication in our opinion.
Post # 9
@AB Bride: We asked the sellers to pay a specified amount in closing costs. We ended up agreeing on $2500. I’m not even sure what fees are all included. Our lender estimated our closing costs around $2000 so if thats correct we are going to use the remaining $500 to pay our first year of home insurance.
Post # 10
We ended up paying all the our closing cost as the buyer, and the seller paid all of their closing costs. Our closing cost mainly was property taxes and home insurance. Where as the seller was the title search and all that fun stuff. We decided to cover all our closing costs as an incentive to accept our offer.
Post # 11
I used a monoline lender.