if you are buying a house and it says all u need is 3 percent down... do u still have to pay closeing cost or does the seller pay it?

Asked by Jerralyn Gadsden-thomas, Birmingham, AL Wed Apr 3, 2013

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George Jackson’s answer
George Jacks…, Agent, Birmingham, AL
Wed Apr 3, 2013
Hi Jerralyn,

Your question is one that is best answered by an experienced lender, as the answer will depend on the type of financing that you have. While many of the costs associated with your financing are somewhat negotiable, the seller will have a maximum allowable contribution that they can legally concede on your behalf. Once you have been given that amount by your lender, it is up to your agent to draft an offer and negotiate that on your behalf.
May I suggest that you contact my preferred lender, Trey Horton of TJC Mortgage. He has almost 30 years mortgage financing experience, and, like me, he has the heart of a teacher. His direct number is 205-296-8741.
I hope this helps, and congratulations!

George Jackson
1 vote
Kawain Payne, Agent, Seal Beach, CA
Mon Sep 23, 2013
Great question.

Down payment and closing cost are two different things buyers have to have funds for. You can ASK the seller to pay some or all of your closing cost. Keep in mind we are in a bit of a seller's market. Offers asking for closing cost help may not favor well against those not asking for help. That being said AYTHING is possible.

I wish you the very best success in your home buying quest!

Kawain Payne, Realtor
0 votes
, ,
Tue Apr 9, 2013
Are you moving to Birmingham? If so I have an office here and can help. - The realtors I work with alwasy make the seller pay closing. So no worries there. I am certified in every Government program. Please email any further questions to trey@tjcmortgage.com and I'll be glad to help.

Trey Horton
0 votes
, ,
Thu Apr 4, 2013
Hi Jerralyn,
Yes, the Buyer is always responsible for paying all Closing Costs/Pre-Paids in addition to their required down payment. The Buyer can have their Buyer's Agent negotiate for the seller to pay some of possibly all of the Buyer's Closing Costs/Pre-Paids. The Seller can never contribute toward the down payment though.

Getting Pre-Qualified prior to beginning the home search is critical. To do this, you would need to submit a Pre-Qualification request along with your financial documentation. The following documentation will be needed:

• Two most recent years of W’2’s/income 1099’s
• Two most recent years of Federal Income Tax returns
• Two most recent pay stubs
• Two most recent months of bank statements (all pages)

A loan officer who does not ask for and properly reviews all of the above documentation is doing no service to you and may not be very experienced. Experienced loan officers know that many issues come to light only once the actual documentation has been reviewed.

A Pre-Qualification is valid for 90 days from the date that the credit report has been pulled. At the time of closing, most documents (i.e. credit report, income/asset documentation, appraisal, etc.). Should anything be older than 90 days, an update will be required. For credit, this is simply the loan officer obtaining a new credit report.

As one of the largest direct lenders in the country, Prospect Mortgage offers one of the largest selections of loan programs available. In addition to the standard conventional, FHA, VA, USDA, and Jumbo, we also offer a wide range on Renovation loan programs. Our Renovation programs include FHA 203K (Streamline & Consultant), HomePath Renovation, and HomeStyle Renovation. In addition, we also have an FHA 580-639 FICO program for borrower with previous credit issues.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes
Kay Ray, Agent, Birmingham, AL
Thu Apr 4, 2013
The 3% is your down payment. there are always closing costs when you are obtaining a loan. However in many cases the seller will p
ay some of these closing costs. It is all about the negotiating.
0 votes
Renee Hamilt…, Agent, Alabaster, AL
Thu Apr 4, 2013
George's answer is right! I also have a great lender. Now is a great time to buy and 100% financing is still available in some areas but only until September 2013. I'm ready to help!

Renee Hamilton
Web Reference:  http://www.e21realty.com
0 votes
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