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.
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.