Asking Sellers to Pay the Buyer's Closing Costs

Some buyers have barely scraped together enough money for a down payment, and just don't have enough to pay their buyer's closing costs, too.

The real estate market has slowed down in many parts of the country and turned into buyer’s markets. This means that many sellers may be willing to give a credit to buyers for the buyer's closing costs.

Almost three out of every five transactions in these slumping markets involve a cash credit to the buyer. Beware, though, buyers who demand a closing-cost credit really should ask their lenders about it before writing an offer. Those who take it for granted that the lender will allow a credit (including how much of a credit) may find themselves in a bit of a predicament midway through the deal if the lender rejects the closing-cost credit.

Because no matter what you hear, there is no such thing as cash back to the buyer at closing, i.e. money into the buyer’s pocket. Listen to me: No. Such. Thing. Except for those who are curling their mustaches as they toy with the law . . . read more about buyer's closing costs.

More Articles by Elizabeth Weintraub:

• Asking the Seller to Buy Down Your Mortgage
  
• Mortgage Tips For Buying in a Falling Market
  
• Buyer's Market Strategies

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