How Financing Details Affect your Offer
Closing Costs and Financing Incentives
There may be times when, as part of your offer, you request the seller to pay all or a portion of your closing costs, or provide some other financial incentive. One common request is asking the seller to provide funds to temporarily buy down your interest rate for the first year or two. Such incentives can be especially effective if a buyer is tight on money or pushing their qualifying ratios to the limit.
Whenever you ask for incentives such as these, you
will probably find the seller less willing to negotiate
on price. After all, what you are really asking for
is to have the seller give you some money to help you
buy their house. The end result is that, for a little
relief in the beginning, you are willing to pay a little
more in the long run.
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