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.

	See All Tips In The "First Time Buyers" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Michelle Perkins & Associates
RE/MAX Regency
403 Holiday Court
Warrenton, VA 20186
Toll Free: (877) 341-1077
Phone: (540) 341-1077
Home Office: (540) 937-9991
FAX: (540)341-1001
Email: michelle@mris.com

Why hire one agent when you can have a team working to ensure the quality service you deserve when looking to buy or sell! The "team" approach benefits everyone involved and is in place to better serve you. Our valued clients! Nikki, Susan and I are waiting for your call. *We offer over 13 years of licensed real estate experience. *Looking to sell? We utilize the latest in Internet Marketing & Technology. Over 80% of Home Buyers start their search on the internet. All our advertising drives Home Buyers to our website, so they see your home first. Also, I'm now offering your home to be appraised by a licensed appraiser before you list with me to make sure we price your home right for the highest price in the quickest amount of time. Call or e-mail me for more information. *Looking to Buy? Our clients have found that by meeting with us, they have a greater knowledge of the current market and greater opportunity to live in the right property for them and their family. We simply need to meet.