Through my agent, we were able to negotiate credit back from the seller after performing inspections. I realize the credit back will probably exceed my closing costs. In this situation, what can I do with the left over? Looking at the cost, buying down the rate does not seem to make much sense. Can I take the credit as cash after closing? Am I able to lower the purchase price or pay down the loan? The lender is trying to get me to use up all my credits and trying to convince me that I can't get money off the table. I think he may not be correct.
the lender will control whether or not you can get Cash Back also changing the price could screw up the loan amounts
We have done things like pay extra property taxes, HOA dues, or pay for a very expensive HO policy then downgrade after closing (take a $0 deductible, high coverage plan)
New2Workin
Addicted Member
posted: Oct. 29, 2009 @ 2:32p
Thanks sis. How do I go about taking these steps? I don't have an impound account, so I don't know where I would put in the property tax? Do I just tell the escrow officer to send the remaining credit to the governing jurisdiction in charge of taxes?
Awesome idea regarding the homeowner (HO) policy, I thought I purchase that outside of escrow before the loan is finalized. I know it's already on the HUD statement but how do I get that included as part of the charges against the credit I'm going to get?
Your insurance agent knows how to send the insurance bill to escrow to be paid at closing.
Your escrow company knows how to send the full years property tax payment to the tax authority.
Call them and make it happen.
One possible hiccup would be if there is a limitation on the usage of the sellers credit - sometimes its limited to NRCCs (non recurring closing costs). IE only the one time fees you pay during the purchase, not recurring bills like taxes and insurance.
if it has no limitations, you need to make sure to use every penny of it.
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