Do I Have to Pay the Closing Costs?

By
Mortgage and Lending with Fairway Independent Mortgage NMLS #196099
https://activerain.com/droplet/4CS

Do I Have to Pay the Closing Costs?

This post was inspired by an email from a first time buyer in Woodbridge, Virginia asking What are closing costs and do I have to pay them?

The answer is yes, you as the buyer are responsible for the closing costs when buying a home.

However, the seller of the home can agree to pay them on your behalf when properly negotiated in your Real Estate Contract.



FHA and VA Loans allow between 4% to 6% seller help for closing costs.

Here is a quick example:

The closing cost to purchase a $250,000 home in Woodbridge, Virginia is estimated to be $7,380.

If the seller agrees in the contract to pay a $7,380 seller credit then the buyer does not have to pay the closing costs because the seller is paying them on your behalf.

Many buyers believe that since we are in a so-called Buyer's Market, "The sellers should automatically pay their closing costs". The seller paying your closing costs is not a given (in any market), so make sure you are working with a Realtor with the experience and knowledge on negotiating a Win/Win Real Estate Contract.

Subscribe to my blog for my next post: "The Seller is Paying Closing Costs Can I Get Money Back At My Closing"...

 


 

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Peggy James 01/30/2011 11:45 PM
Topic:
Lending / Financial
Location:
Virginia Prince William County Woodbridge
Groups:
Military Relocations
VIRGINIA
Local Expert
Responsible Mortgage Lenders
Tags:
closing costs
first time homebuyers

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
754,419
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Markita,

I'm finding that sellers are willing to pay closing costs, because they know that it's the thing to get their home sold instead of the buyer going somewhere else.

Mike in Tucson

Jan 31, 2011 03:43 PM #1
Rainmaker
144,804
Markita Woods NMLS#196099
Fairway Independent Mortgage - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

Mike:

That is so true. Thanks for stopping by.

Feb 01, 2011 01:27 AM #2
Rainmaker
320,100
Tamara Inzunza
RE/MAX Executives - Alexandria, VA
Close-In Alexandria and Arlington Living

Great explanation Markita, a lot of buyers get confused when it comes to understanding closing costs.

Feb 16, 2011 02:05 AM #3
Rainmaker
144,804
Markita Woods NMLS#196099
Fairway Independent Mortgage - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

Tamara, so true...thanks for stopping by!

Feb 16, 2011 02:18 AM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
144,804

Markita Woods NMLS#196099

Queen of Mortgages - FHA, VA, Conventional, USDA
Ask me a question
*
*
*
*
Spam prevention

Additional Information