Home Buying in 06357>Question Details

Kelly Taylor, Home Buyer in Niantic, CT

When buying a bank owned property.?

Asked by Kelly Taylor, Niantic, CT Tue Nov 25, 2008

We are buying a bank owned property that was foreclosed upon. The selling bank is offering 3.5% towards closing costs. What isincluded in closing costs that could total 3.5%. I know lawyer fees only total about $500-800, but we're looking at their 3.5% contribution being more than $7000. Can I consider our home inspection and septic inspection part of those covered closing costs?

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Any remaining funds could be used to pay property taxes, fire insurance, HOA fees, etc.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Tue Nov 25, 2008
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
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Any and all closing cost and pre-paid items (taxes, home owner insurance and 2 months reserves for each) can be paid with the seller paid cost of 3.5%; that is provided that you have FHA financing that allows for up to 6% seller contributions or VA financig that allows for up to 4% seller contributions. With FHA or VA financing the property also has to meet minimum FHA or VA conditions or it has to be repaired to those standards prior to closing . The only exception is unless the repairs can not be completed due to wheather related conditions. In that case the repairs cost can be escrowed with the title company at 1 and 1/2 the cost of repairs.
If you are using conventional financing the seller can only pay 3% of all closing cost and pre-paid items.

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0 votes Thank Flag Link Tue Nov 25, 2008
closing cost is typically 3.5 to 5 % of the cost of the house, so if I were u, Id kiss the banker WHO IS GIVING YOU MONEY,

instead of whinning
0 votes Thank Flag Link Tue Nov 25, 2008
Hi Kelly,

Speak with your agent, your attorney and your mortgage broker. Your mortgage broker should be best able to answer this for you, as he or she will have an estimate of what your closing costs will be. What is allowed to be paid by the seller towards your closing costs will depend on your particular loan program - some loan programs will only accept a seller credit for non-recurring closing costs (inspections, appraisal, etc.) while other loan programs may also allow the credit to cover pre-paids, such as pre-paid mortgage interest, homeowners insurance, etc.

Speak to the professionals you are working with to identify the specifics of your purchase.

Good luck!
0 votes Thank Flag Link Tue Nov 25, 2008
Kelly.... Do you have a Realtor so the Realtor can contact the listing agent and find out what the bank will cover?

Cheryl Adamo
http://www.ziprealty.com/agent/cadamo
0 votes Thank Flag Link Tue Nov 25, 2008
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