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If the seller is paying our closing costs, what fees does this include? Taxes. points, insurance?

by juliemorris9218 from Big Bear City, California. Nov 2nd 2015 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Ask your loan officer to give you a break down of all your costs and fees.. typically, when you purchase a home, then your negotiations can include seller concessions to be applied towards your closing costs.. this is typically expressed as either a percentage of the sale price (example: 3% of $200K home = $6000) or a flat dollar amount.. (example: seller agrees to pay $5000 towards buyers closing costs), etc.. But every loan and every property will have different fees associated with it.. so, just call your loan officer and ask him for a loan estimate.. it's that simple.. 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 NMLS# 226347

Nov 2nd 2015
Allen Moshiri (
#1071 ranked lender in California - 3 contributions

Greetings- First things first, there is a limit to what percentage of the sale price a seller can credit in the form of 'Seller Credit'- Typically on a FHA loan the limit is 3% - So be mindful of that. What are closing costs? They comprise of Escrow costs, Title Insurance both covering the lender and you the borrower ( So that is two Title insurance costs), Lender costs such as fees and points. Additionally in the closing costs you will end up paying for Property Taxes that are coming due and will also have some prepaid expense. You are in Big bear and home costs range all the way up to $2,000,000- It is a simple math, if your were getting a FHA loan for $400,000 a 3% maximum Seller Credit would equate to = $12,000 in closing costs coverage, which is more than enough to cover your costs. Perhaps you would do the math for your particular purchase price and instead ask for a 3% 'Seller's Credit' which not only may cover the closing costs but also could reduce the purchase price, if there are funds left over. Hope this was helpful. Please note that I am licensed in California NMLS# 1083889, I am a mortgage banker at Bay Equity Home Loans, we have 64 Branches on the West coast and you can reach me at 310-699-7957. You can Also find out more information at: but not the least I am able to help you structure the loan to your advantage, do contact me.Best of LuckAllen M.

Nov 3rd 2015
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