Hi All,
I am in the middle of purchasing my first home, and the seller agreed to a seller’s concession. The seller has said that he will give me up to 6%. If the property appraises for more than that is it worth taking the concession and putting the money in my pocket?
6% towards closing costs… not your pocket.
well this is what we are doing… The seller is going to raise the price by 3%. Agreed price is 230,000 3% is 6900. We are going to raise the price to 236,900 and the seller is going to kick back 6900 to me at closing. Are you telling me that I can use that for closing costs only?? What if there is more cash there than closing costs?? Don’t I get to pocket it?
Better check with your lender/underwriter first.
I am in the middle of purchasing my first home, and the seller agreed to a seller’s concession. The seller has said that he will give me up to 6%. If the property appraises for more than that is it worth taking the concession and putting the money in my pocket?
You won’t be able to literaly put it in your pocket!
When a lender approves seller concessions they have it shown as a credit from the seller to you the buyer on what is called a HUD-1 or settlement statement.
With this credit it is deducted from the amount that is owned by you
thus alowing you to not have to bring as much cash to the table
why you need to ask the lender is because most lenders only alow 3-5% seller concessions and you usually have to bring in your own pre-paids which are taxes, insurance and prorated interest.