What Is A Seller Credit? How To Get The Seller To Pay Your Closing Costs
Вставка
- Опубліковано 1 чер 2024
- Want to save money on closing costs when buying a home? This video will show you how to negotiate a "seller credit" with the seller to have them pay a portion of the closing costs. I’ll give you tips on how to request and negotiate for the credit, as well as how to make sure it's applied correctly. By the end of this video, you'll have the knowledge to save money on closing costs and make your home-buying experience better.
► ► Get Pre-Approved With My Team → www.winthehouseyoulove.com/le...
► ► Get An Agent Referral → www.winthehouseyoulove.com/agent
TOP RESOURCES
💪 Let Us Beat Your Loan Estimate → www.winthehouseyoulove.com/co...
📉 Today’s Rates → www.winthehouseyoulove.com/rates
🏡 Max Purchase Price Calculator → www.winthehouseyoulove.com/ma...
📅 Complete Buying Timeline → www.winthehouseyoulove.com/ti...
📊 Loan Comparison Calculator → www.winthehouseyoulove.com/ad...
🎓 Lower Student Loan Payments → www.winthehouseyoulove.com/st...
💳 Credit Score Simulator → www.winthehouseyoulove.com/cr...
0:00 What Is A Seller Credit How To Get The Seller To Pay Your Closing Costs
0:37 Pros and Cons
2:38 Closing Costs
5:16 How it works
6:16 Seller Credit Limits
7:09 Hidden Strategy
13:02 Why do it?
14:26 How to use it?
16:01 3 Steps to make it happen
- DISCLAIMER -
Kyle Andrew Seagraves is Federal Mortgage Loan Originator (NMLS 1701021) licensed in all 50 states with the Dan Frio Team at Allied First Bank (NMLS 203463), an Equal Housing Lender. Separately, Kyle owns Win The House You Love LLC, an education company. Win The House You Love LLC is not a lender, does not issue loan qualifications, and does not extend credit of any kind. This video is only for educational usage. All calculations should be verified independently. This video is not an offer to lend and should not be used directly to make decisions on home offers, purchasing decisions, or loan selections. Not guaranteed to provide accurate results, imply lending terms, qualification amounts, or real estate advice. Seek counsel from a licensed real estate agent, loan originator, financial planner, accountant, and/or attorney for real estate, legal, and/or financial advice. Allied First Bank is not affiliated with the VA, FHA, or any other government agency. This video has not been approved by any government agency.
Offered asking with 10k concessions and got accepted. Using that to pay points for lower interest rate.
Awesome!!
Do you have to specify what is for on the contract and where do I write it.
@@patvargas7488 No, your agent will just write it in the contract as "buyer is requesting 10k from seller for their closing costs" or something like that. You could using it to buy down the rate if you choose to go that route or pay your closing fees.
Currently working on getting my first home and your videos have been extremely helpful!
Best of luck! Thank you!
Me too! Best wishes!
In the process of buying my first home now. Your videos have been a huge help in understanding everything. I actually had the seller accept paying closing costs which is awesome. I did have to offer a little more to beat other offers, but still, less closing cash for me. I learned a lot of how this works from your videos. Thank you!
Decided to look up videos on first time buying and found one of your videos. After looking a little closer, I realized you were my neighbor growing up in Vandalia! We lived right across the street from each other. It's good to see you are doing good and being successful at what you are doing
Haha that's awesome! Good to hear from you again! Feel free to email if I can help kyle@winthehouseyoulove.com
I had no idea about some of the tips and tricks discussed here. Thanks for breaking it down and making it easy to understand!
Great! Thanks for watching. :)
Always find your videos helpful, especially when there’s new loan programs available or updated rules regarding home purchases!
Kyle thank you for sharing your knowledge! I appreciate these videos. Have you done a video on possible “repairs”? Scenarios where you talk about how much you think people should save for possible emergencies. I know I have heard you talk about it like you did today, but not sure if you have done a full video on that topic.
Always learning from you Kyle. Thank you 🏡🙏🏽
Thank you for watching my videos. :)
Thanks brother!
Can you use the state down payment assistance for any part of your closing cost? Whether its the prepaid items attorney fee etc.
Thank you for sharing your knowledge! You always put out such useful info! Could you touch base on taking out a loan that has construction costs for repairs included?
Your videos have educated me a lot on buying my first home….just got pre approved and currently looking..cross ur fingers everything goes well
Best of luck! Thanks for watching. :)
LOVE your videos.
I just recorded a personal video reply for you: vid.us/txzntk
Excellent content! Where can I access this spreadsheet?
Hey Kyle, you think you could do a video on DSCR loans? I am definitely interested in it however I don’t know if their are any downsides or other requirements I might need to meet to qualify, I’m a realtor btw thanks.
Hey Kyle, is a Non-QM loan still a Conventional loan? Or is it just another loan type such as FHA, USDA, and VA?
Thanks!
Hi there! Do I have a bit more leverage considering I am a cash buyer? The home is listed at 225k but I'd like to offer 210-215k because Im afraid of how much the closing costs will be. It's only been on the market 2 day but has a ton of views
If you do a sellers credit from the home purchase price. Can you still get seller subsidy instead of repairs as well to help pay for closing cost?
How do i know what the closing will be? House is 335k they accepted our offer of 320k in last vegas NV. Is the closing % depend on the lender?
Think my bf said its 16k. Seems like alot.
Perfect
Thanks for watching!
1st comment!!!!!!! Always great info!!
Thank you so much for watching!! :)
Hi. Question. When getting down payment assistance on your mortgage does it increase your interest rate? And if it does can we lower by purchasing mortgage points? Thank you !!!
Yes please answer this question, Kyle! I would like to know also.
could you post the excel file?
Texas property tax is obnoxious, along with homeowners insurance.
Taxes especially can be brutal
TX is insane, but you you have kids it’s worth it. The HOI can be shopped around for.
Why would the seller want to do this because in the end it means that they are coming away with less money...right?
Are these tips applicable to new builds as well?
Yes if the builder is willing to negotiate
Also can a lender tell us NO we can not ask for closing concessions also can a lender say no about me buying down the interest rate or asking the seller too ?
when asking a realtor his/her opinion on asking for a seller's credit, does the realtor have any positive or negative incentives to tell me anything other than their honest opinion? Do these seller credits affect the realtor's commission in any way?
If the purchase price is raised, the agent gets paid slightly more. For example a $10,000 increase in price would be about $300 more an agent may earn.
So technically yes, but it’s not much.
I do loans , I do this all the time , sometimes I have extra seller concession left and I use it towards buying down the rate
That’s great!
@@WinTheHouseYouLove i use to do loans for Ohio , I tell everyone to go to you and watch your videos , your the best , such a great teacher
Does this even happen anymore? Considering you would be seen as less appealing with asking the seller to cover closing costs. And in this crazy market (August 3, 2023) is this even doable?
So you pay insurance twice in the first year? When closing in full AND per month in escrow?
Yes because when it’s one year later your lender pays for the full year that just started.
Hope that made since. It’s like paying 2 months rent when you get an apartment.
Can I use seller credit and repair credit to replace roof before closing? Or ask the lender move a portion of credit to escrow account for roof replacement?
If the roof issue is related to the appraisal, it will need to be fixed before closing. The easiest solution is to have the seller fix the roof in place of whatever credit they were going to give.
good video
2024 - $40k on hands trying to get a home in NY state around $460k, let me tell you…IMPOSSIBLE, I already passed the frustration part, now it’s just an acceptance.😢
It is a tough market currently!
Noted
Thanks for watching!
So, the loan provider wants to see all the money in your account first right? Are you saying to have all the money saved, the DP and closing cost but you may get to keep it in the end?
You usually only need to show what is needed due at closing in your account
What’s the difference between a concession and just negotiating the house? From the sellers view point is there any delude fence?
By "negotiating the house" do you mean the price?
To the seller, a $5,000 concession is not different than a $5,000 price reduction. In both situations, the seller is making $5,000 less.
To the buyer, a $5,000 concession can be used to pay down closing costs. A $5,000 price reduction will only be seen as a minuscule different in lowering the monthly payment.
@@WinTheHouseYouLovebut with a 5000 price reduction on the house now you have $1,000 more available to you to pay for the closing costs? I’m assuming 20% down so a 5K reduction means you can put 1,000 less down
On a $400k purchase price and 20% down, yes a $5k reduction in price would lower your down payment by $1,000.
We qualified for a down payment assistance but still need ti come up with 8500 which we don’t have. We need sellers credits or home ownership is not in the cards for us. #studentloanssuck #interestrates
Hey Jaz, it sounds like you've been able to secure some down payment assistance, which is great news! I can totally understand your frustration about needing an additional $8500, though.
Exploring seller credits is definitely an option. This is something that home buyers can negotiate with the seller, where the seller provides a certain amount of money towards closing costs or even towards the down payment itself. It may be worth having a conversation with your real estate agent about this possibility.
Hey Jaz, it sounds like you've been able to secure some down payment assistance, which is great news! I can totally understand your frustration about needing an additional $8500, though.
Exploring seller credits is definitely an option. This is something that home buyers can negotiate with the seller, where the seller provides a certain amount of money towards closing costs or even towards the down payment itself. It may be worth having a conversation with your real estate agent about this possibility.
Is this video for sellers? Because this doesn’t help a FTHB.
This is for buyers. It helps buyers reduce their cost to buy a home. About 1/3 of buyers use this strategy.
more money down the less your payment is because your loan is smaller.