Jen, yes this is possible but getting harder to do. The biggest reason is that appraisers are getting more and more conservative and unless you are getting a great deal on the home, these closing costs increase th actual loan. If the loan is higher, it is less likely to appraise at that value and therefore, less likely to receive a loan. I always caution my sellers when receiving offers like this that we run the risk of failing on the Loan Conditions and losing the transaction. As the others noted, work with a good Realtor that is working for you as a Buyer's Agent (and not the seller) to understand if the property is really worth it. A point on a loan allows you to pay more up front to originate the loan and realize a lower interest rate or some construe it as an origination percentage to originate the loan (ie 1% on a $200K home is $2K added to your closing costs). Go with a fixed rate. You can't likely find an ARM anymore. They are dangerous if you are planning to stay in the home for a long time. Rates are great right now. Call me if you want a good lender. Thanks, Eric Johnson Door2Denver 720.279.1099

I think your question should be asked to The Realtor and Lender working on your deal

Hi Jen,
It is possible for the bank to pay your loan closing costs, depending on their needed net and policies. What I do know it that most homes in Aurora are selling for less than the county appraised value. Your buyer's agent will be able to help you make a fair market offer to the bank.
Regarding the type of loan (fixed or arm), you need to determine how best to make and keep your budget. If everything stays the same for your employment, how well can you handle the inevitable increases in the loan payments? How best do you budget and keep your finances in order? A good lender can take that into consideration so you finance in the best way for you.
Good luck.

Jen, the seller may pay closing costs. I suggest like Jude, that you speak with a Realtor AND lender to get some clarification on all of these questions. They are great questions, but require details and specifics from your current position. Mke some appointments with lenders and know your credit situation.

Jen

Yes it is possible for sellers, including banks, too play for closing cost. However every loan product have different guidlines on how much and what the seller can pay for. With the passage of the Housing Rescue Bill the government has eliminated seller paid Down Payment Assistance programs, begining in October. Check with the lender you are working with, and find out exactly what the guidelines are. But do not be surprised if the guidlines changes at any time.

A point is simply 1 percent of the loan amount. What the point is for is the bigger question. If the point is being used to buy down the interest rate, how much, and how much will that buy down really save you?

EVERYONE is better off with a fixed rate mortgage. You shouldn't even be considering an ARM if you are planning on living in the home for a long time. ARMs are one of the reasons for the foreclosure problems.

Thease are all rather complex issues which cannot be explained in very good detail in this type of format. if you would like to discuss these further, feel free to contact me directly.

Jen-

You've thrown out many questions that you should consult directly with a Realtor and a lender about. There are certain dynamics to the transaction (short sale, lender owned, etc.) that would determine the offer price and a banks willingness to offer closing costs. Additionally, a good lender can help you determine the proper loan for you.