I am a first time home buyer and I have a house in mind. Background on the house it is a foreclosure, Fannie Mae, the asking price is 105,000.

Asked by Kendra, Texas Mon Mar 12, 2012

I have 4k in reserve and need 6% seller contribution but the bank will only offer 3%. What would you do. Would you raise the offer in hopes of them accepting the 6%. Need your advice.

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Don Groff, Agent, Austin, TX
Wed Mar 14, 2012
You may want to talk to other lenders with less closing costs. If you did this you would probably be OK with the 3% seller concessions. I am also a Mortgage Broker and with a 640 or better score I could get you at a 4% on an FHA purchase with a 3% rebate towards closing costs. That with the 3% the seller is contributing would give you the 6% you are wanting... but you may not even need it.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
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Jordan Zitoun, Agent, Dallas, TX
Wed Mar 14, 2012
I have an idea- offer 108 thousand and get the 6 percent in closing costs. the bank only looks at the net number so as long as you can keep their net the same by raising the price you should get the home you want. I feel like the home is probably worth 125-130 if you are buying it as a foreclosure and you will never feel the difference in a note payment on 104 thousand compared to 101 thousand.

Jordan Zitoun
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Ron Thomas, Agent, Fresno, CA
Mon Mar 12, 2012
You will need to know the amount of the Appraisal before you are through:
If you inflate your offer and increase the Seller contribution at the same time; you will need to hope that the Appraisal will cover the higher figure.
If you have an Appraisal Contingency, you will be covered for that.
Also, your Pre-Paid Taxes will decrease each month until June and that will decrease your Closing Costs.

You must have already made your Offer, and surely you did your diligence and know what the Market Value of the Property is; otherwise you wouldn't know that the Bank will only go 3%.

The Bank probably has a low tollerance for playing games and you will have only one chance to get this.
Depending on your LOAN, you should be able to hold this together, You're close.

Good luck and may God bless
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