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Trulia, Other/Just Looking in San Francisco, CA

Which costs are potentially negotiable in closing costs

Asked by Trulia, San Francisco, CA Sat Mar 3, 2012

Are there negotiable and non-negotiable closing costs?

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Heather Mackinnon’s answer
The limit of seller contribution is dependant on the type of loan. For FHA the maximum is 6% which can apply to everything except downpayment.. Conventional renges from 3%-9% seller contributions depending on the down payment. Less than 10% is 3% contribution allowed, 10% down is 6% contributions allowed and a downpayment of 25% or more allows seller to contribute 9% toward closing costs. VA loans allow 4% closing cost contribution and an additional possible 4% sales concession (i.e. paying off debts)
USDA loans •No limit to how much sellers can contribute (is limited by actual closing costs/prepaids). NOTE: When a home appraises higher than the sales price, closing costs can be financed with USDA rural loans up to the difference between the sales price and appraised value.
There are different percentages allowed for seller contribution if the purchase is an investment home or 2nd residence.
1 vote Thank Flag Link Sun Mar 4, 2012
As Mark said fees can be divided up between buyers, sellers and Lenders. I kid people that everything is Negotiable EXCEPT the Kitchen Sink. The best advise is to shop, compare and ask questions. The more knownledge you have, the more sense it makes to feel comfortable with your decission. Sometimes the money saved is not worth the Service you could have experienced. Not that you always get what you pay for but the importance of the realtionship. I have worked with many lenders who first care about you and the rest will follow suit. Good luck!
Web Reference: http://www.har.com/garyplee
1 vote Thank Flag Link Sun Mar 4, 2012
Almost anything is negotiable in regards to closing cost.

Lenders compete with each other and may offer different rates and different closing cost. Any cost they pass on to you could be removed, but there is typically a trade off in regards to a higher interest rate. Some fees that might be set include fees from other 3rd parties they simply pass on to you like an appraisal or survey. Always a good idea to get a break down of fees from each lender to compare.

As far as sellers, anything is negotiable. They might be willing to pay every closing cost you will have, but you know there would be a catch as in a higher sales price. Fees in regards to sellers include the title insurance fee, Realtor fees, HOA fees and more.

Best advise would be to listen to your Realtor. Regardless if you are a buyer or seller, your agent can give you advise on what are the "normal" fees for your area and what to expect and how to work an offer, but always know nothing is set and you have the right to work with any one you feel will give you the best deal. Keep in mind, however, that no one works for free and to get great service...you will likely have to pay some closing cost.

Mark McNitt
Bernstein Realty
m# 832-567-4357
1 vote Thank Flag Link Sat Mar 3, 2012
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