I would address repairs now and have them done prior to closing. Most banks only allow the 6% closing cost credit at the closing if you have more than 6% a red flag could go up and cause you problems you dont need from your lenders underwriting department when they review the final documentation. I would speak with your lender, realtor and attorney as to how to deal with the repairs that need to be addressed as you are walking into a gray area and want to make sure you are fully protected.
Most lenders will only allow up to six percent of the purchase price back at closing. If you receive additional money back for repairs it will set off a red flag to the lender. I would suggest that the seller do the repairs prior to closing or reduce the price of the home
You may be better off reducing the sales price of the home, rather than asking for more contribution. In some states, if the buyer does not require all of the closing cost contribution, the remaining balance that isn't used or goes beyond the limit then reverts back to the seller's pockets. Talk it over with your agent and loan officer and get their opinions.
Hello. My name is Rose Canha and I am a Realtor with Trend 2000 Real Estate. To answer your question, yes you certainly may ask for a credit at closing for repairs or have the seller address it (at their cost) prior to closing.
Are you working without a realtor and purchasing a For Sale by Owner? Just curious as your realtor should be providing you with options and explaining the process especially if you are a first time home buyer.
I wish you alot of happiness in your new home.