This is a fantastic way to save money when purchasing a home.
How can you save money when you’re purchasing a home? This has a lot to do with your closing costs credits. No matter what state you live in, closing costs can make up around 3% to 5% of the purchase price.
When you qualify for a mortgage, you qualify not only for your down payment, credit, and income, but also for having the needed money for the closing costs. If you don’t have that and you have no one to give you that as a gift, the seller can provide a closing cost credit right in the contract up to 3% to 6% of the purchase price of the home.
Your closing cost credit can be used to buy your rate down, so you can better afford the home. Many sellers are willing to provide that. It can pay for your appraisal, title charges, attorney, and all the other things that are required to make the transaction happen.
If you think that you might be interested in purchasing a home and you want to know how a closing cost credit works, I would love to help you understand. Please feel free to give me a call or send an email so we can discuss it. I’d love to be your lender