Curious to know

[Anonymous]

I'm. Trying cut my outta pocket cost is it possible to get seller help an lender credit

[StartingOver10]

---

@Anonymous wrote:
I'm. Trying cut my outta pocket cost is it possible to get seller help an lender credit

---

Yes both can contribute toward your closing costs and pre-paid expenses. However, they can not contribute toward your  down payment. You can get a gift (if you have the resources).

In some markets the seller just won't contribute because the demand exceeds supply and they will find a buyer that doesn't need a contribution. Check with your Realtor to see what your market is doing now.

As to having the lender contribute, the lender does that by increasing your interest rate over the term of the loan. So in essence you are paying more monthly for the entire term just for a little bit of help at closing.

Make sure you are willing to make the trade off. I have found it is better to come in with your own costs (or have the seller contribute) rather than have the lender pay. Have the lender provide the figures so you know exactly what it will run.

[Anonymous]

Seller credits will be something your realtor can guide you through. This really depends on your local market and how much interest there is in the property.

Lender credits are always an option, but as SO10 said they will raise your interest rate. Typically, if you know you will stay in the house less than 5-7 years, taking lender credits will mathematically benefit you as you wont have to "pay back" the lender credits when you sell. If this is a forever home, lender credits will end up costing you more.

You can always ask your realtor to write an offer for several thousand dollars over the price you actually want to offer in exchange for the seller paying the closing costs. This way you are basically financing the closing costs into your loan. The house will have to appraise at the higher value though.

[StartingOver10]

---

@Anonymous wrote:

Seller credits will be something your realtor can guide you through. This really depends on your local market and how much interest there is in the property.

Lender credits are always an option, but as SO10 said they will raise your interest rate. Typically, if you know you will stay in the house less than 5-7 years, taking lender credits will mathematically benefit you as you wont have to "pay back" the lender credits when you sell. If this is a forever home, lender credits will end up costing you more.

You can always ask your realtor to write an offer for several thousand dollars over the price you actually want to offer in exchange for the seller paying the closing costs. This way you are basically financing the closing costs into your loan. The house will have to appraise at the higher value though.

---

^^^ Check with your Realtor and your lender as to how the market is in your specific area. I know in my market the appraisals are coming in low more than 50% of the time. Once the appraisal comes in low, then the sales price is up for renegotiation and the first thing that the seller wants to lop off the price is the seller contribution. So if you are in a similar market, be careful as you could end up wasting valuable time and money paying for the appraisal. Have your Plan B in place if you are in this kind of market.

[DallasLoanGuy]

agree.

real estate is local.

one poster here can get closing cost help and another has to pay list price with no closing cost help.

some markets hotter than others