Closing Cost!
I was wondering I have heard many people complain about when buying a property aside from the down payment or the financing about the closing cost that they have to pay.
I have also seen many post about people expressing how they avoided closing cost or closing cost was not a factor. Also when some investors brag about how they did not pay anything out of there pocket for a property.
Q: How do you avoid closing cost?
Is there ways around? 
Not really. However, you can always get the seller to pay for it That is usually my goal when purchasing a house.
-Chris
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In what instances would you propose it?
How?
Is it ok if you give more more details?
Thank you for responding.
In the past, I have asked the lender to add closing costs into my mortgage loan. I still had closing costs, but they were not paid out of pocket.
In the contract I use (standard TREC form) it has a specific paragraph devoted to seller contribution to closing. I always get at least 3% contribution. I usually try and get another 5-10% in seller allowances for carpet, paint, or redecoration. I'd rather offer a little more $$$$, but pay less at closing. Most sellers just care about the bottom line, and don't mind if you fudge the top a bit.
-Chris
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"Seller Concessions".
That's the non-"Loan Fraud" way of putting it. Most non conventional lenders allow 3% and many allow up to 6%.
That's a legal no money down option.
hope this helps,
clear2close
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And it depends on the transaction. When I buy, I use all of my own forms and all I need is a notary...the only closing cost I will pay, if thats what you want to consider them as, is when I record the deed. When I sell, the buyer pays all the closing costs.
Only thing I pay for are doc stamps and the little recording fees.
[ Edited by nebulousd on Date 11/04/2003 ][ Edited by nebulousd on Date 11/04/2003 ]
Hay clear2close,
So if you state "Seller's Conssesion", this makes it non-fraudulant/
Example: $1,100.00 Seller's allowance to buyer for property clean-up (haul-off junk).
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Not quite... More like;
If you are using a lender that allows seller concessions and the appraisal is high enough to allow it, the seller can state one price and truly accept a lower price or "give concessions" to help the buyer get closed.
hope this helps,
clear2close
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What do you mean by "seller consession"?
One thing to keep in mind is that seller contributions can increase the cost of the transaction, since quite a few fees are based on the sales price.
For example, in King County, WA (Seattle) there's a 1.8% tax on the sale. That tax is based on the sales price, so if the seller is going to pay an extra $10k in costs the transfer tax is going to go up by $180 (assuming the purchase price was adjusted by that $10k).
Not dramatic, and it certainly doesn't mean it's not a useful thing to do, but understanding the side effects in your state/county/city is a good thing.
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Concessions in this context means;
the seller conceeds or 'gives up' some financial help to the buyer/borrower.
hope this helps,
clear2close
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Thank you I really appreciate the help!
...anytime.
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