nidena
Senior Member
Joined: Dec 28, 2010 20:32:26 GMT -5
Posts: 3,580
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Post by nidena on Jun 11, 2020 10:20:14 GMT -5
I will agree that your cash reserves are a little iffy. But I bought a house with nothing more than a 5% downpayment. It was in good shape so it all worked out ok. Why close by July 6? That's really soon to get the inspection done, anything fixed that needs to be fixed, and so on. Close in the middle of August, and you may be able to delay that first payment until Oct. That only give you one month of double payments instead of two. And ask for closing costs! If you know that closing costs will be $3500, ask for that. My realtor said sellers prefer a $ amount towards closing costs so they know what they are agreeing to pay. In your price range, asking for closing costs should be pretty standard since whatever you are buying is basically a starter home. If you need the refrigerator and/or washer & dryer, ask for them. Sellers try to make getting into that first home as easy as possible. They know a buyer in that price range typically doesn't have a lot of cash. I hope you are working with your own realtor. First time home buyers make a lot of mistakes that a realtor can help you avoid. The seller pays the realtor's commission, not you. I don’t understand how asking the seller to fund closing costs is any different than rolling closing costs into the mortgage. As a home seller, I have a minimum net selling price in mind for my property. If a buyer requires me to contribute to closing costs, major upgrades such as new flooring, or the like, my selling prices goes up so that my net is still the same. If a buyer wants upgrades before closing, I’ll even try to get some compensation for my time and effort arranging for the upgrades. No free lunch. They are flip sides of the same coin. If the seller agrees to pay closing costs but doesn't request/require that the selling price be increased to accommodate them, their net is decreased. They can keep their net the same or better by increasing the price which equates to a larger mortgage loan for the buyer.
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nidena
Senior Member
Joined: Dec 28, 2010 20:32:26 GMT -5
Posts: 3,580
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Post by nidena on Jun 11, 2020 10:23:59 GMT -5
I suggest stop paying on student loans in deferment and save up your cash. If you need to, you can delay closing by a week or two. Delaying closing a week or two will have no effect on me saving up cash nor will it effect the first mortgage payment. Whether closing is July 10th or July 30th, my income hits the bank account each 1st. My mortgage payment will still be due Sept 1st. I'll just make mortgage payments that are near to what I pay in rent and knock a decade or so of the payoff date.
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