bcbadboy Posted February 19, 2005 Report Share Posted February 19, 2005 I found a pre-construction home that my wife and i are going to buy. The developer said that if I finance through their finance company, they will pay 6% closing cost. I already put down $3000 down. My question is, do I still have to pay anything at closing? If so, how much will I have to bring to the table? Link to comment Share on other sites More sharing options...
firstsource Posted February 19, 2005 Report Share Posted February 19, 2005 In your area, if you are getting 100% financing, you will get money back at closing. CHarles Link to comment Share on other sites More sharing options...
bcbadboy Posted February 19, 2005 Author Report Share Posted February 19, 2005 Oh ok. I am putting down $3000 so I assume that the bank will finace 97%.Does that make a differance? Link to comment Share on other sites More sharing options...
bcbadboy Posted February 22, 2005 Author Report Share Posted February 22, 2005 ???? Link to comment Share on other sites More sharing options...
firstsource Posted February 22, 2005 Report Share Posted February 22, 2005 It depends on the cost, if it is 100K, and they have set you up for a 97% financing, then you may have to bring some funds "to the table". It depends on the lender:All will allow the seller to pay for all non-recurring closing costs (NRCC) This is everything except for 1 years Home Owners insurance paid in advance, and prepaid interest. With very few exceptions, all lenders are set up to have their payments due the 1st of the month. As it is rare to close and fund on the last day of the month, they have you pay interest only to bring the date up to the end. My software "default" is set for 15 days, so when I send out a Good Faith Estiimate, that is the number. Now, to confuse things more, there are now several wholesales lenders that I and Amortgageman use that will allow the seller to pay ALL closing costs, up to the percentage limit allowed. So, if you have put down 3% of the sales cost, you may have to bring in about 1K more. If the lender is financing 100% of the sales cost, you may get money back. Charles Link to comment Share on other sites More sharing options...
bcbadboy Posted February 23, 2005 Author Report Share Posted February 23, 2005 Thanx for the reply. Link to comment Share on other sites More sharing options...
amortgageman Posted February 23, 2005 Report Share Posted February 23, 2005 BC,You hav not given enough information here specific to your transaction. What is the purchase price? What type of financing are you getting? Are you looking for the full 100%, are you using FHA? Please be more specific as to the finacing they are offering you.Charles brings up a good point, regarding the closing costs. Some lenders are now allowing recurring closing costs to be paid in seller concessions. If that were the case, and you are getting 100% financing, then you could possibly get all $3,000 back at closing. It also helps to know what the "preferred lender" is charging for closing costs. Have you already applied with your builders lender? Have you received a Good Faith Estimate? There was one instance on here not so long ago, where the buyer was getting 6% seller contribution (which usually will cover everything), but the broker had an enormous amount of greed and the buyer still had to pay at closing. Link to comment Share on other sites More sharing options...
bcbadboy Posted February 23, 2005 Author Report Share Posted February 23, 2005 I am getting the property for $113,000. I did get a good faith estimate. I am going with FHA but I want a ARM cause I plan on living in the property for up to 3 years then I plan on renting it. Link to comment Share on other sites More sharing options...
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