Question Details

Home Buyer, Home Buyer in Florida

Did I loose money? seller agreed to pay 3% of the sales prices twrds closing cost to include pre-paids,

Asked by Home Buyer, Florida Fri Aug 22, 2008

non-allowables and
/or home warranty. But our closing cost came about $1500 less than the 3% contribution and now they are saying we cant put the balance towards our down payment. Its not FHA and we are putting 20% down payment so opting not to escrow so no prepaids either. Is this a lost cause?

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I agree with what Luke says and if you want to see a bit of a longer answer you can click in this link… to my blog on this subject I wrote back in April. If you do get your lender to lower your rate you will save thousands over the life of your loan. Hopefully this helps.
Dave Muti
0 votes Thank Flag Link Sat Aug 23, 2008
It's not necessarily a lost cause f you structure it right. Yes, your seller agreed to pay "up to" 3% in closing costs and if the costs didn't add up to the full 3% then the seller can't help that. What I would do is talk to your mortgage lender and use the $1,500 toward buying down your interest rate. For instance, if you got 6.5% on a rate, then see if you can pay a discount fee of and lower your rate to 6.25%. Use as much of the credit as you can. That is your best route at this moment.
0 votes Thank Flag Link Fri Aug 22, 2008

I'm not a Realtor, just a buyer - but I have recent experience with submitting offers for 3 different houses (none of them worked out). We also asked for the same closing costs/prepaid items, but I do know that our offers stated "Up to 3%...". Do you have a paper copy of your offer? If so, you may want to check the wording to put your mind at ease. Good luck!
0 votes Thank Flag Link Fri Aug 22, 2008
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