They should be helping you out with what should be a simple question to answer and should have been considered in advance.
The bank is approving your offer? Is this a Short Sale? How much below the asking price did they actually accept? If they agreed to coming down a lot chances are they won't also agree to a sellerâ€™s concession because they are probably already losing a tremendous amount of money even at the asking price!
If you really like the house and think your getting a good deal, you will need "SOME" money in order to purchase a home, if your real estate agent is still trying to sell you on 100% financing they are most likely not very reputable and probably just lying. To get 100% financing these days you'll need to have enough income to afford the home without a problem and also have excellent credit near the 800's
A seller concession is what you are looking for where the seller must agree to contribute money from the proceeds of the sale towards paying the closing costs.
For an FHA loan up to 6% concession is allowed
For Conventional up to 3% is generally allowable.
Do you have loan officer that provided you an initial prequal letter? Contact that loan officer right away to explore what options exist for covering those additional closing costs. Donâ€™t take any additional loans, as new loans can adversely impact which mortgage programs will work for you. You wouldnâ€™t want a higher rate on your mortgage and an additional payment to your credit union.
Before legally binding into the contract, find out that you can qualify for a loan program that will allow you to put less down, or roll expenses into the program.
When the bank returned their approval with changes, it was not binding upon you. Have you agreed to the changes?
If so, you should still have an out with a mortgage contingency.
Do phone your mortgage rep for advice.
Deborah Madey - Broker
Peninsula Realty Group
I do not believe that banks will agree to sellers concessions and as stated in your case, they are not agreeing to it. Your best bet is to speak to your loan officer about the best route to take with getting your closing costs. I know some buyers who have wrapped it into their loan and others who ended up putting less down so they'd have the money for the closing costs.
Again, assuming you have an agent who wrote up your offer, did she write the contract up with the sellers concession provision? Because if it was written in the contract and they agree to the offer but not the concession and you do not have a signed agreement by the bank, then you can negotiate the terms. However, if the bank came back and said yes to the dollar amount but no concession and you accepted that counteroffer from the bank and everyone signed off...not only should you speak to your loan officer but to your attorney as well. If you can't come up with the closing costs...I'm not sure that taking out a personal loan is a good idea. With that extra debt on the table, you may no longer qualify for the mortgage that you qualified for before taking on the extra debt.
973-228-1000 ext 132
Do you have an agent negotiating for you?