Since you have a Realtor, it's important for you to have your Realtor explain exactly what the 6% is for. Anything else is just mere speculation on our part so you need to have her explain exactly what this money is for. My guess is that it is going toward your closing costs and down.
Congratulations on being an "almost homeowner!"
Gena Riede, Broker
Are you using Nehemiah in conjunction with FHA? That program will pay about 3% (*2.85% actually) for your down payment, and then there is 1.5% MIP added to your loan, and Nehemiah also pays 3% of your closing costs, when you use the program with FHA.
How did your agent explain this to you? Did she give you any documentation?
Ask her if what is the 6% your Realtor is talking about.
Definitely have your agent clarify that to you. My best guess is she is talking about the Nehemiah program mentioned below and not the commission. But that is only a guess. .
Commission is set by the seller (could be homeowner or trust or the lenders now a days) beforehand, so agent don't ask for commission. However, I have recently seen one agent who asked to have her commission increased in a purchase contract, which I thought was odd, because the commission was reasonable and you don't negotiate commisson in a purchase contract as there is no bearing on what the buyer is getting.
It is very important that you have a relationship with your agent that's open and that you feel comfortable to ask any question about buying a home or anything on the contract. She should be willing to spend the time to explain that to you until you understand what you are doing. Being a first time homeowner in this market or any market needs a lot of hand holding. That's how we earn our business and our worth to our clients.
Make sure you ask her to clarify.
Need to clarify my previous answer with you. Although there was a time that 6% would have been a "red flag," there are certain instances where this amount would certainly be acceptable. Buying down points and closing costs are examples of what this might be used for however, it is extremely important that you clarify what the 6% is being used for with your agent and your Lender.
Just ask them the question and I'm sure that they will be more than willing to let you know. Communication between you, the agent and the Lender are vital for a smooth transaction.
Confront your agent with this question. He/she needs to know they need to be clear when dealing with "first time buyers."
If you don't clairify your need for comprehend the process, it more then likely will happen again.
Is this the American Dream program whereby the seller 6% towards the purchase of your property? Please clarify with the agent. If this is a foreclosure the commission for your agent is already set by the bank. So I am pretty sure that the 6% is for you to assist you for the mortgage.
All the best,