Posts from April 20th, 2018
April
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What Does It Mean When a Seller Pays Closing Costs?
What does it really mean when the buyer asks a seller to pay closing costs?
Let's say that the buyer is putting in an offer on a $200,000 home and they are going to make a full-price offer and ask for the seller to contribute to the closing costs. A few things to consider is what is allowed with the loan product. Each loan is a bit different in what they allow. And this should be confirmed prior to submitting the offer with the loan officer.
But remember, that making a "full-price offer" and asking for closing cost is not a full-price offer. The reason for that is this—because the buyer is asking the seller to take a reduction in price so the buyer can finance their closing costs. This ends up meaning the seller really isn't paying the closing cost in the end. The buyer is paying their own closing costs by financin...