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Buying1sthome, Home Buyer in Manassas, VA

Question about closing cost/buyer assistance.

Asked by Buying1sthome, Manassas, VA Wed Jan 23, 2008

When I make an offer and request closing cost/buyer assistance of say, $15k, does that mean the seller is going to give me $15k in cash ?or the seller going to knock $15k off the purchase price? or somthing else?

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Buying1sthome - hopefully you are using an agent as a home is a very large purchase to do on your own the first time - when you make the offer, you will need to be specific about what you want.....so do you want the price to be $15k less? Do you want closing costs covered up to $15k? Do you need repairs/new carpeting/new appliances/new roof/etc? Do you want the Seller to pay discount points and buy down the interest rate? The offer could include any of these items, or a combination, but it needs to spell out exactly what you want the seller to do for the $15k of value.

Chances are your lender is not going to allow you to walk away from the closing table with the keys to a home and $15k in your pocket (they have gotten burned where Buyers were going to use the money to fix something and instead spent it on a vacation and the lender ended up with the home through a foreclosure proceeding without the repairs being completed). A good faith estimate from a recommended lender will give you what the estimated closing costs and pre-paids will be - from this document, you then are in a better position to determine how much of your closing costs you need or want the Seller to cover. The Seller will look at your request, deduct anything you have asked for from the offer price, and then determine if the net offer is attractive enough to accept, reject, or counter.

Good luck with the pursuit of your first home!
1 vote Thank Flag Link Sun Jan 27, 2008
Hi Buying1sthome,

The $15k will probably be taken from the proceeds of the sale of their home so you won't see a dime of it. If you're making an offer, you can simply offer $15k less than asking price if that is what you wish to do but you won't be getting any closing cost assistance.
1 vote Thank Flag Link Wed Jan 23, 2008
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