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Real Estate Tips
First Time Buyers >The Seller May Pay

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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Real Estate Trivia
Q 
What is the role of the U.S. Housing Authority?

A 
Created in 1937 by FDR, the U.S. Housing Authority provides construction loans to small communities and states.
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Nancy Clayton, REALTOR®, real estate agents and broker for Falmouth, Mashpee and Bourne Massachusetts home listings, property and land for sale - NUMBER1EXPERT(tm)

Nancy Clayton, CRS, ABR, CBR, SRES, e-PRO, RECS
RE/MAX Classic

205 Worcester Court
Falmouth, MA, 02540
508-548-6667
877-80 REMAX
Fax: 508-540-6832
nancyclayton@NUMBER1EXPERT.com

Whether looking for retirement or leisure properties in the Cape Cod area, Nancy Clayton is your neighborhood expert. Nancy offers you over 20 years of experience and enthusiasm in real estate. She is dedicated and educated to represent you in all of your real estate needs. Representing you and not houses is her specialty.

CRS ABR CBR SRES ePro wcr MLS Equal Housing REALTOR


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