Attention Buyers…. Ask for Closing Cost!
In today’s real estate market selling a home is very competitive. Sellers have learned that if there is an interested buyer, they have to keep them happy or you’ll go find another home. Sellers are routinely offering incentives to attract buyers. The most common is closing costs. If the seller is offering closing costs this is a huge benefit for you.
As a buyer, you could have 3-4 thousand dollars in closing costs. Many buyers wrap these costs into the price of the loan, which in turn slightly increases the monthly payment. So if the seller is offering closing costs, find out how much and let your loan officer know. If not, consider asking for closing costs as part of your offer. You should never offer more than the asking price just to get closing costs. If the seller is motivated, they will agree to it at the original price.
Depending on the amount the seller is willing to pay, it could be more than what your fees are. If there is enough left, your loan officer may be able to buy down the interest rate on your loan, which will lower your rate and your monthly payment.
Recently a buyer applied for a loan, but did not qualify because she didn’t have enough money in the bank to pay all the closing costs. But as soon as the seller agreed to pay the closing costs, the buyer qualified! Additionally, after the closings costs, there was enough left to buy down the interest rate ¼ point, saving the buyer $50 per month on their mortgage payment.
