Home Buying in Palos Hills>Question Details

Jackietunkl, Other/Just Looking in

When asking seller to pay your closing, what will that cover? And what fees will I have to pay prior to closing and at closing?

Asked by Jackietunkl, Fri Apr 13, 2012

I'm using FHA because I don't have much up front cash and I need to know what I will have to come up with from the time I make an offer to the time the closing is complete. Pease help!!!

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First, your mortgage lender should be able to itemize and estimate your closing costs for you. If your lender estimates your closing costs will be $4,500, and you ask for $3,000 closing cost credit, you will have to come up with the difference of $1,500 plus your down payment. Almost all types of closing costs can be covered by the closing credit. Secondly, if you are working with a Realtor, he/she should explain to you how a closing cost credit works. In your offer to purchase a home, you can request a specific $ amount for a closing credit - or - a percentage of the final agreed price. Remember that whatever you ask for as a credit - let's say you ask for $3,000 - comes off the seller's bottom line. Finally, if you are low on cash, but have a good credit rating, you may be eligible for down payment assistance. Ask your lender or your Realtor.
0 votes Thank Flag Link Sat Apr 14, 2012
Typically, a FHA Buyer will ask for 3.00% of the purchase price as a Closing Cost Credit. This credit will be used at closing to pay a significant portion of your closing costs. Items such as the Buyers Title Costs, Attorney Fee's, Recording Fee's, Loan Fees, PMI & Pre-Paids. You will be expected to have 3.50 - 4.00% of the purchase price as your down-payment. This includes your Earnest Money Deposit due when submitting the contract. Closing Cost Credits can be negotiated with the Seller but don't expect them to reduce there price much if your asking for Closing Cost Assistance.

Palos Hills, IL
0 votes Thank Flag Link Fri Apr 13, 2012
closing fees, attorney, title insurance, interest, etc.
I am unable to give you a set amount of the costs since every lender and closing is different based on each situation. I will tell you that most lenders will charge a out of pocket fee from the buyer for Appraisal. An appraisal is done by a third party so therefore they need to be paid up front. Also if you want to have a home inspection on the property you plan on purchassing, you will need to pay that a the time of inspection.
I hope this information helps you.I just want you to know if you are not working with a Realtor now, It does not cost you anything and I will walk you through the entire experience.Fell free to contact me at 708-646-6533 or email me at Nichole.Lathus@cbexchange.com .

Nichole Lathus
Coldwell Banker Residential
0 votes Thank Flag Link Fri Apr 13, 2012
Hello Jackie,

My name is Nichole Lathus and I am a Realtor with Coldwell Banker Residential in Tinley Park. As a Realtor who works with all types of buyers, I would recommend sitting down with a Realtor and discussing all of your questions and concerns about Buying for the first time. I always have a Buyers consultation with all of my buyers about what they can expect before buying their first property.
To answer your question, Before we ask the seller to pay cosing costs, we would sit down with your lender and ask him/her what they would need to close so you would not have to pay out of pocket for closing costs. Typical closing costs consist of Title,
0 votes Thank Flag Link Fri Apr 13, 2012
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