No royal wedding fever here today…

It’s casual Friday and I want to talk about something that’s more important to all of us. Money.

I’ve been getting a bunch of questions about who pays for what expenses during a purchase transaction. Instead of making a list of every fee that the buyer pays for and what the seller pays for I want to let you know that every fee in a purchase transaction can be negotiable. Seller concessions can be a great way to save money on your purchase.

Here’s more in today’s video:

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(Watch it on your mobile phone or email reader here)

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During your negotiations, you as the buyer should already know what you will need for a down payment and closing costs from your lender. Take the amount of your closing costs and simply write it in the offer. It would read something like this:

“Seller to pay X amount of buyers closing costs and prepaid items at the time of closing.”

This amount will help you need to bring less money to closing. You can only get credits for costs and expenses, not down payment money.

For some reason I think sellers are more willing to pay some of your closing costs than reduce their price. It is really the same thing. However, it sounds better and they still get to tell their friends they sold their house for $250,000 instead of $245,000. Nobody ever mentions the $5,000 concessions when they ask “how much did you get for your house”?

One of the stupidiest things I have ever seen was an offer that was written that said: “Seller to pay buyers closing costs”. Really? That is just asking for trouble.

If that buyer was my client I would be buying his rate down two points with the seller’s money. You need to be specific. That was a “for sale by owner” transaction and I know 99% of the realtors out there know not to do this, but I wanted to mention it just in case a newbie is watching. I don’t want anyone to learn the hard way! They may be using their commission to get the deal closed. That’s just another good reason to use a realtor.

Mortgage Bonds are trading slightly higher today following the recent upward trend and are being supported by the tame inflation data that was released this morning.

Today’s rates with NO lender fees are 4.75% on a 30 year, 3.875% on a 15 year and 3.125 % on a 5/1 ARM.  Get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you Monday!!

– Mike

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