The costs of buying a home may be daunting. For example, you may have finally saved enough for a down payment on your first home, with a little left over to buy the furniture you will need. Then you hear about having to pay closing costs you weren't anticipating, and this may seem like a real setback.

One way to cover such a shortage is to make the sellers an offer that calls for them to credit you for some of the closing costs. As a rule, the sellers may pay a maximum of 3 percent of the sales price if the buyer is putting five percent down. If the buyer is making a down payment of 10 percent or more, the seller can contribute up to 6 percent of the sales price to cover the buyer's closing costs. Some items, such as prepaid taxes and the first month's mortgage payment, must be paid by the buyers. Sellers may also contribute to paying the appraisal, points, title insurance, settlement attorney fees, state or local transfer taxes and similar items.

Keep in mind that if the credit is included in the price of the house, the appraiser will have to justify the amount, based on sales prices of similar homes in the neighborhood.

	See All Tips In The "First Time Buyers" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Michael & Petra Fahey
Country Ranch GMAC Real Estate
1858 Highway 95
Bullhead City, AZ. 86442
Direct: 928-763-3363
Office: 928-704-8811
Toll Free: 877-492-GMAC
Email: Petra@TeamFahey.com

Team Fahey Teaming Up For You!

www.TeamFahey.com is brought to you by Michael and Petra Fahey
NUMBER1EXPERT™ in real estate for Bullhead City, Mohave Valley and Fort Mohave, Arizona, Luxury Homes, Second Homes

Read Michael and Petra Fahey's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge