A property seller may credit a buyer for closing costs in lieu of a price reduction.
The closing cost credit should not exceed the actual closing costs as shown on the final HUD settlement statement. If the amount of the credit exceeds the actual closing costs, and the down payment is compromised an underwriter will review the file and possibly disallow a portion of the credit.
Items that can be included in the credit:
Loan fees including discount points, Appraisal cost, Title company fees, Recording and delivery charges, Prepaid interest, Taxes due at closing, Insurance due at closing, Invoices for work completed to the property.BEWARE. .. [READ MORE]
Experience:
27 years originating residential mortgages
For Bay Area Real Estate
Commitment:
We find and deliver the best rate and terms for buyers specific qualifications and needs.
Promise:
We set realistic expectations, coordinate, communicate, and remain focused on closing your
transactions.
27 years originating residential mortgages
For Bay Area Real Estate
Commitment:
We find and deliver the best rate and terms for buyers specific qualifications and needs.
Promise:
We set realistic expectations, coordinate, communicate, and remain focused on closing your
transactions.
Latest posts by David Ashburn (see all)
- Learn When to Lock Your Interest Rate When Buying a Home - November 27, 2013
- David Ashburn Explains: Limits To Seller Credits For Closing Costs. - March 11, 2013
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