Do I Have to Pay the Closing Costs?

Do I Have to Pay the Closing Costs?

This post was inspired by an email from a first time buyer in Woodbridge, Virginia asking What are closing costs and do I have to pay them?

The answer is yes, you as the buyer are responsible for the closing costs when buying a home.

However, the seller of the home can agree to pay them on your behalf when properly negotiated in your Real Estate Contract.



FHA and VA Loans allow between 4% to 6% seller help for closing costs.

Here is a quick example:

The closing cost to purchase a $250,000 home in Woodbridge, Virginia is estimated to be $7,380.

If the seller agrees in the contract to pay a $7,380 seller credit then the buyer does not have to pay the closing costs because the seller is paying them on your behalf.

Many buyers believe that since we are in a so-called Buyer's Market, "The sellers should automatically pay their closing costs". The seller paying your closing costs is not a given (in any market), so make sure you are working with a Realtor with the experience and knowledge on negotiating a Win/Win Real Estate Contract.

Subscribe to my blog for my next post: "The Seller is Paying Closing Costs Can I Get Money Back At My Closing"...

 


 

Contact Markita Aldridge-Woods at (703) 929-2274 or via email for custom tailored mortgage solutions.

 

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Comment balloon 4 commentsMarkita Woods NMLS#196099 • January 29 2011 03:08PM

Comments

Markita,

I'm finding that sellers are willing to pay closing costs, because they know that it's the thing to get their home sold instead of the buyer going somewhere else.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 7 years ago

Mike:

That is so true. Thanks for stopping by.

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) over 7 years ago

Great explanation Markita, a lot of buyers get confused when it comes to understanding closing costs.

Posted by Tamara Inzunza, Close-In Alexandria and Arlington Living (RE/MAX Executives) over 7 years ago

Tamara, so true...thanks for stopping by!

Posted by Markita Woods NMLS#196099, Queen of Mortgages - FHA, VA, Conventional, USDA (Fairway Independent Mortgage) over 7 years ago

Participate