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Is there a way that we can make the home seller pay closing cost?

by ashcrofts5 from Takoma Park, Maryland. Dec 27th 2013 Reply


Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,823 contributions

You cannot make the seller do anything. A good Realtor should be able to negotiate to have the seller pay some or all of your closing costs. You may have to give up something in the negotiations. Many times the buyer agrees to pay a little more for the home in exchange for the seller to pay for some of the buyer's closing costs. Remember, when you go to get your loan to use a local Mortgage Banker/Broker rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of MANY lenders, not just those of ONE bank, and can properly guide you. But more importantly, we are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Dec 27th 2013
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Richard Airey (richardairey)
#3 ranked lender in Maine - 662 contributions

Sure... just ask. There is no way to "make" the seller pay them but a good Realtor will be able to include that conversation in the negotiation process. Also, make sure you ask your lender if your particular loan program allows seller concessions.

Dec 27th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

Everything is negotiable. Most loan programs allow the seller to pay at least 3% of the purchase price toward closing costs and prepaid expenses, while some (FHA and VA) allow more. Keep in mind that this means the seller gets less for the house and will factor into that in considering your offer.

Dec 27th 2013
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Mina Galab (minagalab@gmail.com)
#122 ranked lender in New Jersey - 92 contributions

Yes with seller's concession up to a specific percentage of your closing cost depending on the state regulations so you should check with a local lender, best wishes.

Dec 27th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,915 contributions

NO... I hate the term "Seller paid closing costs." Sellers NEVER pay your closing costs - YOU always pay your own closing costs. It is just how you pay that makes the difference. For example, the asking price is $100,000. You offer $100,000, but ask the seller to pay 3% ($3,000). The seller agrees. Did you just get free closing costs? NO. In this example, the seller accepted $97,000 in his pocket. You could have bought the house for $97,000 and paid your own closing costs. But now you've simply rolled the costs into the loan. The other option is you make the same offer, but the seller says no. They need $100,000 in their pocket. So you offer $103,000 and have the seller "pay" $3,000. Again, you are paying your own closing costs, just over time, rather than immediately out of pocket. www.SaintPaulMortgageBroker.com

Dec 28th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,707 contributions

Bert and Joe are really good answers, although I would add a couple of things here.. Typically, closing costs are the buyers responsibility, and as Bert said, you cannot Force the seller to pay anything.. and as Joe said, if the seller agrees to pay your costs, it's still you paying them, since they are a part of your loan.. this is not necessary a bad thing.. If you don't have enough cash for your down payment and closing costs, then this is a way to make your purchase happen.. But there's another way you can get some of your costs paid If the seller is not willing to pay them.. You can negotiate with your lender to help lower your loan costs or get a credit from him to help offset your costs.. you would be accepting a slightly higher interest rate, but the benefit would be the lender credit to pay those 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

Dec 30th 2013
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