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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Gores Real Estate Team
Edina Realty
14198 Commerce Ave NE
Prior Lake, MN 55372
612-201-5447
Fax: 952-447-4735
MarkGores@EdinaRealty.com

Mary Gores was licensed in 1982 and since 1986 has been associated with Edina Realty, one of the nation's premier real estate companies. She is a consistent top performer and has been awarded membership in the Leadership, President's and Master's Circles of excellence. She has many times been named a Super Star Agent by Mpls/St. Paul magazine. She holds the GRI, CRS, 55+ and ePro designations. Mark Gores joined in the business following his graduation from the University of Iowa in 2004. Mark's high energy, technology background, sales skills and creative entrepreneurial spirit quickly earned him the respect of his clients. His Young Voices column in the local newspaper provides an additional outlet for his sense of humor and has attracted community-wide attention. Mark also has been named a Super Star Agent and holds the ABR and ePro designations.

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