This topic contains 10 replies, has 6 voices, and was last updated by Anonymous 7 years, 10 months ago.
- May 6, 2011 at 12:31 am #206593
I’m planning on buying a home in Chicago for about $400K. My friend told me expect to pay about 25K in closing costs unless your seller helps you out. Traditionally do sellers ever pay all of the closing costs? If not all, what kind of percentage do sellers typically give towards closing costs?
- May 12, 2011 at 5:38 am #273544
Sellers do not typically pay any of the closing costs unless agreed to in the contract of sale. 25K is a bit high for a 400K loan. I would expect it to be more in the 10K-12K range.
- May 17, 2011 at 5:18 pm #279604
Depends on where you live, which lender you use, liens against the property, and how the contract is written. There is no “customary” amount.
Remember, the seller pays the agent’s commission, your biggest expense will be the mortgage insurance. I’d say that 25K is on the high side. If you have 40K (including downpayment and earnest money) to put into the deal everything else can be worked out.
- May 27, 2011 at 11:27 am #284463
It is all negotiable. For example if you have a house listed for 350,000 and you submit an offer of (1) 340,000 with 10,000 closing costs paid by the seller or a offer of (2) 330,000 with no closing costs there is no difference to the seller. However option 1 is actually better for the buyer because its 10,000 cash that the buyer can finance
- June 10, 2011 at 3:47 am #434369
Glad you ask. I specialize in first time home buyer programs. You may contact me for more information.
- June 10, 2011 at 3:47 am #434370
Better yet, go to your bank and talk their mortgage advisor there. Talk with someone that you know and trust, they can offer many different types of loans to fill your needs, including first time home buyers, F.H.A., etc.. They can preapprove you at the same time so that you know how much you can afford to spend when you shop for your house. I wouldn’t advise buying your first home through someone who is trolling through this particular part of yahoo answers looking for first time buyers, it’s very easy to get taken advantage of if you don’t know what to expect. Good luck. BTW, if you happen to stumble on a deal of no money down, which is rare if not impossible to find, just be aware that the less you pay down, the higher your mortgage payments will be and the longer your term will be. A general rule of thumb to figure out your mortgage is one hundred dollars per ten thousand borrowed. For example: 100,000.00 loan would be approximately 1,000.00 a month, give or take 100.00 depending on your interest rate. A first time buyer usually qualifies for a lower down payment, like an F.H.A. it’s 3% down as opposed to a standard 10%.
- June 10, 2011 at 3:47 am #434371
I would imagine that in your state there are local no profits such as the one I work with. We do first time homebuyer seminars aproved by hud. Upon completion you’ll receive a certificate that some first time buyer programs require. Here we have down payment assistance, 0 down, credit counceling and more. The other nice thing is that the agents, lenders and companies you’ll work with are pre-screened and will take the luck factor out of things.
Try ACORN, Husing for Hmanity, LULAC Housing, HSN they are all national and may have a chapter in your area.
Good luck, and I hope your first home is a happy one.
- June 10, 2011 at 3:47 am #434372
CONGRATULATIONS on deciding to invest in a home. You can find 100% first time home buyers special program at http://www.restructureyourmortgage.com through the end of July. Feel free to utilize our mortgage calclulator, glossary and submit your information to speak with a certified loan consulutant absolutely FREE. Best of luck.
- June 10, 2011 at 3:47 am #434373
I’m glad you are considering purchasing your first home. It’s a good move and it’s a great feeling to know you own your own place.
Your question about 100% financing (no money down) is correct. Most mortgage companies and banks do offer 100% loans for first-time home buyers. Ask your friends and families what mortgage companies they trust and have worked with in the past. If they’ve done a good job for people you know, they probably will do a good job for you. I’ve included a link below to Quicken Loans First-Time Home Buyers section and you can check it out for great information about things you should consider when buying your first home.
And going with 100% financing for first-time home buyers can be a pretty good idea. By not putting money toward a down payment, you can use the cash for other things such as paying off higher-interest debt (such as the money you owe on your credit cards). This makes good financial sense because mortgage interest is usually tax-deductible (make sure you talk with a tax advisor on what is and what isn’t tax deductible for you) and rates are lower than most credit cards. You may also need that extra money to pay for education or home improvements.
Be careful to sign up for programs that avoid the biggest disadvantage to a no-down-payment mortgage, which is paying private mortgage insurance, or PMI. Usually, anyone who puts down less than 20% of the home’s value usually has to pay PMI. Make sure the mortgage pro you work with gives you some tips on how to avoid paying private mortgage insurance.
Regardless of who you choose to work with, always do your research and ask trusted people for their opinion. Good luck and if you have any other questions feel free to contact me through my profile.
- June 10, 2011 at 3:47 am #434374
Many lenders offer first time home buyer programs, which may have a more competitive interest rate.
Also, most states offer first time home buyer programs which include assistance for downpayment and/or closing costs and even a discounted loan interest rate.
Check out the site below to learn more about the programs offered in Nebraska. Good luck.
- September 18, 2011 at 1:15 am #290384
Each deal is different. I hope you are working with a buyer’s agent who can negotiate for you.
In today’s market, sellers are more willing to assist with closing costs. You should write in your offer that you want the seller to pay closing costs.
You can ask for all or a percentage and it all depends on how motivated the seller is to sell that property.
They will probably counter unless they are VERY desperate!
Ask your Realtor for advice!
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