Seller Concessions for Buyer Closing Costs View this tip on youtube by clicking on the link below: youtube/watch?v=CbAe4uoGkhY Due to the tight inventory and a competitive sales market, seller concessions for buyer closing costs have become less common. Check with the lender to see if they can design a loan package for the buyer that eliminates or minimizes the need for a seller contribution toward the buyers closing costs as this will make your buyer’s offer more competitive. In some cases, the lender, especially on government loans, may be able to pay some of the buyer’s closing costs instead of having to get the seller to pay them. If the buyer needs seller concession for their closing costs, check with the lender to find out how much is really needed so that you are asking for the minimum amount possible, once again making the buyer’s offer as competitive as possible. For example, many minimum down payment buyers using FHA or VA loans, will not need a full 3% as was commonly seen earlier this year. The buyer, especially on FHA loans, still has to have a minimum cash investment and if the seller concession is more than the buyer’s closing costs and pre-paid items, then any unused concession goes back to the seller. For many FHA minimum down transactions, a 2% seller contribution may be enough to cover closing costs and pre-paid items, especially if the lender is not charging any discount points on the loan. This will vary based on the sales price.
Posted on: Wed, 09 Oct 2013 19:26:17 +0000
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