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Is negotiating points on the back end typical btwn brokers and agents?

by improv207 from Booker, Texas. Sep 17th 2020 Reply


John Burke (jburke)
#29 ranked lender in Texas - 238 contributions

are you talking about your lender or real estate agent?| John Burke | Senior Mortgage Banker | Lending in ALL 50 states |Great Plains Bank | jburke@gpbankTX.net | (877)228-9069 | NMLS# 787231 |

Sep 21st 2020
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,409 contributions

It is common to request, and to get "seller paid closing costs" built into your offer.

Sep 21st 2020
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

Points on the 'Back-end' implies after the fact. NO, on a loan, all points or fees are on the front end, or paid in the escrow closing. On commercial properties, there can be sales or income related points negotiated between the buyer and seller, but NEVER on a residential property. I have heard some people refer to front end points and back end points, but what they are actually referring to is the Origination points and the Discount points. Original points are paid to the lender for generating the transaction (It's the way they get paid) and Discount points are common when one is looking to reduce, or 'buy down' the interest rate. However, these are between the Buyer and the Lender providing the loan. Don't confuse money negotiated between the buyer and seller that allow the buyer to use some of the seller's money to pay the buyers closing costs. In the trade, these funds are called concessions and are typically negotiated as a percentage of the sales price. I hope this helps. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ www.ApplyYes.com 480-889-9000.

Sep 22nd 2020
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