Posted on: 18th Jun, 2008 05:06 pm
Hi! I am trying to buy my first house but I am so confused. Perhaps, someone can explain this to me.....my mortgage broker couldn't. I want to buy house and have my loan be for $85,000. I want to ask the sellers to pay for my closing costs of $4000. To do this, my broker says I have to make my offer for $89,000 and the seller would get $85K. To me, this sounds like I am paying for my closing costs. My broker says essentially I would be.....this makes no sense to me. Can someone help me to understand?
Hi Deb welcome to the forum
If you do not ant your loan to be more than 85k you can not offer more than that. Are you getting 100% financing? Anyways what the broker is suggesting is instead of negotiating a discount, which it sounds like you want, they are suggesting offering more. Once you have established a higher price then ask for the difference back in closing cost credits. You can do either.
Are you using a Realtor? They should know how to do this.
It is a buyers market but TX hasn't taken it on the chin like many parts of the country so the broker may think it will take raising the price to get the credit. The problem is simply you will never know unless you try.
Offer $85k and ask for a $4k closing cost credit.
Good Luck
Brian
If you do not ant your loan to be more than 85k you can not offer more than that. Are you getting 100% financing? Anyways what the broker is suggesting is instead of negotiating a discount, which it sounds like you want, they are suggesting offering more. Once you have established a higher price then ask for the difference back in closing cost credits. You can do either.
Are you using a Realtor? They should know how to do this.
It is a buyers market but TX hasn't taken it on the chin like many parts of the country so the broker may think it will take raising the price to get the credit. The problem is simply you will never know unless you try.
Offer $85k and ask for a $4k closing cost credit.
Good Luck
Brian
Hi Brian,
Thank you so much for your input. Yes, I am getting 100% financing. If I could take your time, let me tell you how the negotiations have gone thus far.
On the Texas real estate residential contract:
My first offer:
Cash portion of sales price payable by buyer at closing - $5,000
Sum of all financing described below (excluding any loan funding
fee or mortgage insurance premium $80,000
Sales Price - $85,000
THEN....further on in the contract under Settlement and Other Expenses states, "Seller shall also pay an amount not to exceed $4,000 to be applied in the following order........to other Buyer's Expenses as allowed by the lender.
The seller countered with $85,000 plus $4,000 of buyer's closing cost. I don't get it. What is the difference?
I am just so confused and unfortunately, my realtor is just as confused. Regarding your suggestion to ask for a $4K closing cost credit....asking for a "credit"....is that different?
Thanks so much for your input!
Deb
Thank you so much for your input. Yes, I am getting 100% financing. If I could take your time, let me tell you how the negotiations have gone thus far.
On the Texas real estate residential contract:
My first offer:
Cash portion of sales price payable by buyer at closing - $5,000
Sum of all financing described below (excluding any loan funding
fee or mortgage insurance premium $80,000
Sales Price - $85,000
THEN....further on in the contract under Settlement and Other Expenses states, "Seller shall also pay an amount not to exceed $4,000 to be applied in the following order........to other Buyer's Expenses as allowed by the lender.
The seller countered with $85,000 plus $4,000 of buyer's closing cost. I don't get it. What is the difference?
I am just so confused and unfortunately, my realtor is just as confused. Regarding your suggestion to ask for a $4K closing cost credit....asking for a "credit"....is that different?
Thanks so much for your input!
Deb
Same thing different worfing. Have your Realtor call and ask for clarity. It sounds like they have countered back with just what you offered. They may be thinking differently than it is reading. They are probably thinking like your broker suggested and that is they will give you the 4k for closing costs but they will only do it if you raise the price.
A little communication betweenthe two sides should clear this up.
Good Luck
Brian
A little communication betweenthe two sides should clear this up.
Good Luck
Brian