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.

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David Raesz and The Raesz Team
Keller Williams Realty
Austin, TX 78746
Tel: 512-794-6635
Fax: 512-448-4822
Tel: 800-879-1161
Email: raesz@kw.com

David Raesz and the Raesz Team understands that when it comes to your home sale or purchase, a professional team who will cut to the chase, go the distance and get the job done quickly is the key to your success. And as one of the leading professional real estate teams in the Austin area, the Raesz Team are the Realtors® more and more people are turning to for help. Whether you are looking to buy or sell your home, or if you need the helpful guidance of central Texas' premier relocation specialists, you can always count on the Raesz Team to get the job done right. Hablamos Espanol!

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