Do the Sellers pay the closing costs at closing??

nickswife2004July 29, 2009

We are set to close on our house on August 10th. We're first time homebuyers, and the agreed upon purchase agreement says the seller's will pay up to $3300 in closing costs. Will they pay it at closing? Or how does this work? We have an amount of $3500 we need to pay at closing according to our online mortgage status, and that is factoring in 1883.00 in closing costs.

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blueheron

We always split the closing costs with the seller.

    Bookmark   July 29, 2009 at 7:58PM
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terriks

Yes, the sellers will pay the closing costs at closing. Normally it will be deducted from the proceeds of the sale.

    Bookmark   July 29, 2009 at 9:47PM
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suero

It depends on what you have in your sales contract.

    Bookmark   July 29, 2009 at 10:29PM
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Billl

Prior to closing, your lender is going to give you a document that looks like this.

http://www.hud.gov/content/releases/hud-1.pdf

It will have all the charges and credits and who pays for what. The first page is a high level summary showing the net amounts due to each party. The second page is a detail of all the various charges. That page should show a total of $3,300 in the sellers column. Double check all the numbers to make sure they add up to what you are expecting.

If you have any questions, call your lender and ask! They are charging you all sorts of money for the transaction, so you may as well get your moneys worth. Also, be sure to ask them the exact amount you need to bring to closing and what forms of payment they accept. Typically, they are not going to take a personal check, so you will have to get a cashiers check from the bank. Call ahead to your bank and make sure that someone will be available to help you. (We had to wait for a manager to come back from lunch once.)

Unsolicited tip - Pick one of the random fees that doesn't seem to mean anything (eg not the appraisal or something recognizable)and tell the lender your "friend" bought a house and the fee was $100 less and ask if they will lower yours. Most fees are negotiable but people don't ask. You might save enough to buy champagne and carryout food to celebrate your new home with family and friends.

    Bookmark   July 30, 2009 at 9:46AM
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