Sunday, December 4, 2011

How do I get cash back at closing, when purchasing a home?

How do I get cash back at closing, when purchasing a home?

I am a first time buyer, and I have heard a lot about cash back @ closing, does anyone know what I need to do to get cash back to make improvements to the home?|||No No No that is not right......Here this is it....

Say asking price is 130.000.00. So you ask the owner to pay all closing costs and 2 or 3 points.(depending on credit)

At the point of close the total cost of your loan that you sign for will be x amount 130.because they are paying your closing fees and what every you ask them too. The mortgage company already has set cost of 130. so when you sign for your mortgage the cost of those things will be credit to you. The credit is in a check..

Now, not many mortgage company's do this so shop for a mortgage company that will do 100% financing or 10% cost of loan. With your cost being from the seller..

I would not use a Realtor either...Use a broker they really have to earn your money and they will do a better job that has been my experience..|||Cash back is simple. If cost is $300k for home, you put offer in for $350k as long as house appraises for that much. In the offer that is presented you ask the seller for a Credit of 50k. That's how it works. Make sure you have an agent so you are protected.


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|||The FHA 203(k) Rehab Loan allows you to borrow more than the purchase price in order to make improvements to the home.

The FHA 203(k) loan is available through most FHA lenders.

When you get cash back when purchasing a home, you are actually increasing your loan amount to cover the amount of your rebate, or money returned to you. It can be written into the contract of sale in many ways.

Having the seller pay your closing costs, or returning a portion of the sale price to you from the proceeds he receives is one way to receive cash back at closing. Some mortgages do not allow this, so you must find a mortgage or combination of loans that will allow it. And, for your protection, consult an attorney before signing such a contract.

Sometimes, having the seller rebate money back to you at closing means you will be purchasing the home at a higher price than you would normally if no money was returned to you. You have to determine if, in the long run, this is in your best interest.|||It is simply a matter of your credits being higher than your liabilities on the settlement statement. i.e. if you got 100% financing and had made a 10% deposit, you would get the 10% back less closing costs. You could negotiate for the seller to pay all of the closing costs. The seller could credit you money at closing toward your costs. Your Realtor could rebate you part of her commission. The title company could rebate you part of the title premium. The seller could rebate you part of the purchase price at closing. You could get a construction to permanent loan where the money for repairs is dolled out by the lender as you show that work is taking place.

Whatever you are thinking about doing, run it by your lender, as they have the final word on what is acceptable to them.

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