You put a $1000 earnest money deposit on the offer with a 3.5% ($3500 total) down payment.
The remainder of the 3.5% down payment ($2500 total) is due at close of escrow.
Purchase price: $100,000
Earnest money: $1000
Down payment (3.5% of the purchase price): $3500
Remainder of down pmt. due at close of escrow: $2500
Loan amount: $96,500
The 3% of YOUR closing costs that the seller has agreed to pay go toward your title/escrow fees, lender fees, prorations, etc. Your lender will give you a Good Faith Estimate (GFE) that outlines these fees and exactly how much you'll need to bring to the table (IF any) AFTER the seller's 3% contribution is subtracted.
Hope that helps!
Century 21 All Star, REALTORS
But, the fact is that the $1000 is yours and if the seller pays all the closing costs, assuming your down payment is taken care of and there are no other expenses - then yes, the $1000 will be refunded to you.
Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
This question needs to be addressed to your agent and escrow/title officer. We can hypothesize here, but we are not privy to the actual language used in your contract. Little words like, "May". "Will," "PrePaids", and "Applied To" can and do effect how monies are dispersed and used.
Please turn to the people involved in your transaction to get your answer.
President / Mortgage Consultant
Antigua Capital Funding
You can't get a refund where your required/mandatory down payment is concerned. Your down payment is what you must invest in the transaction. No exceptions. So, if seller concession exceed your necessary closing costs, that difference can't now be applied towards your required down payment as well. As a result, that unused portion goes back to the seller.
If the 3% is more then enough to cover the closing costs, then only the actual costs will be covered. For example is the 3% comes to $5000 and the closing costs are $4000, then that's all the seller has to pay. You won't receive the difference. It'a a credit of 3% or actual closing costs which ever is less.
If the 3% covers all the closing costs, then your $1000 will go towards the money needed for the down payment.