@learned_my_lesson wrote:
I am looking to buy a home with a USDA Rural Development Guaranteed Loan. This is a new construction and the builder is offering to pay closing costs and buy all the appliances too. Since I would not have to come out of pocket for closing costs or have them rolled into the loan, The catch is if you pay the full asking price. Mind you, the asking price is comparable to other houses sold in the area. The house has been vacant about 6 months.
Are you working with a real estate broker? Have you looked at a lot of houses?
No one here can really tell you whether or not this is a good deal because we're not familiar with your area. I would recommend that you look at a number of homes in the same price range. Also, ask about comparable homes that have recently sold.
It's nice that the builder will pay for appliances plus all the closing costs...just make sure you're not overpaying for the home. There will be an appraisal done on the home, and that should put your mind at ease. You will have a financing contingency in your offer. If the home doesn't appraise for the amount you agree to pay, then you don't have to complete the transaction (because then your financing would not work).
Come back here with any questions you may have along the way. Good luck in the process.
