Where to Go When You Need Closing Cost Assistance as a Buyer

Reblogger Lora "Leah" Stern 914-772-4528
Real Estate Agent with Coldwell Banker, 170 N Main Street, New City NY 10956
https://activerain.com/droplet/QfB

Where to Go When You Need Closing Cost Assistance as a Buyer

The real estate market in Rockland County NY is stabilizing and slowly changing from a buyers market to a normal market.  Situations where a buyer might be competing against other buyers for the same home are becoming more prevalent.  If you are a buyer that finds yourself in need of a sellers concession in order to purchase a home and find yourself competing for the home of your choice, Chris Ann Cleland has great advice for how you might find closing cost help from another source - your lender.

If you need help navigating the Suffern NY 10901 or Rockland COunty real estate market give me a call Leah Stern 914-772-4528 and I'll be happy to help.

Original content by Chris Ann Cleland VA License # 0225089470

Being Competitive When You Need Closing Cost Assistance as a Buyer 

The Bristow-Gainesville real estate market is experiencing extremely high demand by buyers, but low levels of inventory.  That means if you are a Bristow-Gainesville buyer, you're going to be competing with other buyers for the same home.  Writing the most competitive offer you can is critical when you find youself in such a Seller's Market.  And you may find yourself in need of closing cost help, writing it into your offers and not understanding why your offers are not getting accepted.

First thing to understand is that sellers look at net sales price when comparing offers.  This is what you offer for sales price, less any concessions.  For instance, if you offered $350,000 on a home, but asked for a $400 home warranty and a closing cost credit of $7,000 from the seller, the net sales price to the seller would be $342,600.  It's easy to see how needing closing cost assistance can put you at a disadvantage when competing with buyers who may be able to pay for their own closing costs.

Here's a great idea on getting your closing costs covered, but not reducing the net sales price to the seller.  Allow your lender to increase the already ridiculously low interest rate on your loan a smidge and the lender will be able to pay for your closing costs.  The amount of closing costs covered by your lender will be directly influenced by how much the rate increases.  Don't panic.  We're talking about fractions of a percent, in the 1/4 of a percent range.  That's approximately how much a lender would need to increase your rate in our market to cover our customary closing costs.  Naturally, consult with your lender to see how this would work for you and your mortgage.

It's just one more way to make your offer the most competitive you can in the Bristow-Gainesville real estate market.

Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155.  To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.  Or you can visit her website:  www.nvarealestate.net.

Header photos taken by Chris Ann Cleland.

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Topic:
Home Buying
Groups:
1st Time Buyers
Mortgage Solutions
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
Tags:
seller concessions
lender assistance
leah stern
clsoing costs
suffern ny home buying

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Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

A great tip Leah.  Buyers need every bit of help that they can get to ensure a smooth closing and it helps to know that information up front.

Feb 15, 2013 10:22 PM #1
Rainmaker
503,046
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Charite, so true.  Forwarned is forarmed.

Feb 18, 2013 12:40 PM #2
Rainmaker
504,688
Teral McDowell
Referral Patners LLC - Murphy, TX

Getting the lender to work with the buyer is a great help in improving offer acceptance; thanks Leah.

Aug 18, 2013 03:44 AM #3
Rainmaker
503,046
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Teral, its an option that most buyers and their agents seldom think of.  For those that can afford the monthly payments but just don't have the etra cash for closing costs, this strategy would work well for them.

Aug 18, 2013 10:30 AM #4
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Lora "Leah" Stern 914-772-4528

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