If the list price is $100,000 it means you offered $90,000. The contract will say $100,000 so you will be asking the mortgage company to finance $100,000 (or the percentage you will need to close the property). In the special provision section the contract will stipulate that the seller contribute $10,000 to closing costs which will be deducted from the final payment at closing. This type of situation allows the home owner more money for repairs etc. once they move into the home.
North Shore Homes, Inc. (Milwaukee, Wisconsin) - Whitefish Bay, WI
President
Camille,
Do you know any lenders that will allow such a generous closing cost credit? My experience is that lenders will only allow credits that are no greater than the actual closing costs (lender's title, application fee, appraisal, etc.) and prepaid items (interest, taxes). I have only witnessed one buyer who was able to obtain a credit that was larger than the actual closing costs and pre-paids.
Tim
Jun 07, 2010 06:10 AM
Charlotte Shirey & Associates - Richmond, VA
Helping You Succeed!
Renovation loans can provide even more cash for renovations - they have worked very well for me!
Jun 07, 2010 06:14 AM
Eric J - Dream Home Financing - Freehold, NJ
Dream Home Financing
Typically the maximum seller contribution is 6%. However, the point you were making is right on the money.
Jun 07, 2010 08:13 AM
Real Estate Resources
Recent Posts
Real Estate General Information
about 1 month ago
Home Selling
almost 10 years ago
Real Estate General Information
over 13 years ago
A Q&A style postings.
Questions are asked from actual consumers through our website JustJerseyRealEstate.com and other social media outlets about the real estate market in NJ. Feel free to contact me directly with your own question or FOLLOW ME on Twitter @ItsJersey2Me for real time activity updates.
Comments(3)