closing costs

[jbee]

Please help me understand closing costs...

If you have $5,000 in closing costs and the seller agrees to pay the entire amount.  I know the sellers' check will be $5,000 less but I also found out that it will still be included in your loan amount.  How can that be, because it seem like it's being paid twice (originally by the seller and then by you over the life of the loan).

Maybe I'm missing something..

[ShanetheMortgageMan]

It won't be included in the loan amount.  Where you may have gotten that idea is if you get the seller to pay $5k in closing costs, then in theory they would've also accepted a sales price of $5k less without paying your closing costs.  So by buying the home for $5k more, your loan amount is increased by the same amount (well not exactly the same amount since there is a down payment, but it's close).

[jbee]

I think I kind of understand it now....  So really, it mostly benefit you to pay closing and offer less on the house, because you"ll pay less interest over the years.

Thanks Shane!

[ShanetheMortgageMan]

Correct, welcome!