Looking for an answer

[amby5755]

Okay, so turns out the sellers of the home we were looking at purchasing are not paying any closing costs. Our LO said we could offer the sellers more money. My question is how does this work? Who will end up paying the closing costs?

[tooleman694]

Technically you, think of it as financing the closing costs

You pay more for the house and they cash you out 3 to 6 percent for closing costs

[amby5755]

Would we need to bring anything else to closing besides the 3.5 down?

[Kozmo]

Oh boy..

Your LO or broker should be able to give you an idea of what you need to bring to closing.

Depending on what state you live in you will potentially have to pay property taxes at closing.

For example, here in Michigan we pay summer taxes for Jan-June and we pay ahead. So the seller in my situation paid $3800 already in January...since we are closing in April I need to reimburse him for May, ans June because he pre paid. I also need to prepay my taxes for 2014 if that makes sense. But that's just here, other states have different rules for property taxes.

Also, there are title fees, lender fees etc.

It really is important to get with your LO or broker and tell them what property your looking at and they can give you a rough idea of what to have for closing.

[JM-AM]

Depending on the type of loan you can roll over closing cost into the loan.

Either way you are paying closing cost.