National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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Thanks for your add'l info, but my answer still remains the same. While it is common for sellers to contribute to buyer's closing costs, it all depends on the other terms and conditions in your offer, other competing offers and negotiations. Is the seller paying any of your costs? If so, how much?
Also, don't forget that there are certain fees that you are not allowed to pay for on a VA loan and also don't forget that the seller is responsible for the payment of the termite inspection. I hope that was written in your offer.
Exclusive Buyer's Agent
I am receiving a VA Home loan, Around 100k, and plan on closing mid november. When I had spoke with my agent about this question he did not sound to sure if I would get and closing costs covered at all.
That depends on the bank and how strong the offer is written.
If you are an FHA approved buyer, then the banks typically understand most FHA buyers today will be asking for those and on home in the 100k range it's 99% of the time.
Your closing costs will range around 4k depending on how much home you are purchasing.
I have had some reduce the closing costs and used part of the commission I earn to help make up the difference but only if needed.
Another place to look for assistance is the money offered by what is known as an NSP or DPA. These are down payment assistance programs and with the down provided, you can use the remainder of your money to pay your own closing costs, making your offer to the bank stronger.
You can read about those here: http://www.yourwayhomeaz.com/
If you are a 1st time buyer I suggest you try to research the home buying process and discuss this with a Realtor in advance so you can lay out the best plan and strategy for you to purchase a home.
There is also a pamphlet called the "Arizona Buyers Advisory" that you should research.
Here is a link to the Buyers Advisory article I wrote on Trulia: http://www.trulia.com/blog/stew_keene/2009/02/how_to_researc
Let me know if there is anything else I can help you with.
And remember, Always work with a Realtor.
Home Smart Realty
Yes it is common for sellers of bank owned properties to pay some, if not all of the buyer's closing costs. However, in a competitive market like ours, where there are lots of homebuyers, there are quite a few homebuyers that will pay their own to make their offer stronger. If/when your closing costs are paid, the percentage varies, but it's not always a percentage...sometimes it's a dollar amount. Typically, you would be safe asking the seller to contribute 3% of the purchase price towards your closing costs, but that amount and the strategy differs and varies on each property and for each seller. The amount you ask for, if any, depends on other factors in your offer, such as price, COE date, other terms and conditions, type of financing or cash, etc.
So, speak with your real estate agent. If you don't have a Buyer's Agent helping you, then get one before doing anything else.
Exclusive Buyer's Agent Realtor