Seller Concession Cheat Sheet

[SAVE THIS CHEAT SHEET!!]

This will come in handy while navigating going forward in 2024...

 

Creative ways to use excess seller contributions

While seller contributions are limited to actual closing costs, you can constructively increase your closing costs to use up all available funds.

Imagine the seller is willing to contribute $7,000 to buyer closing costs but they only add up to $5,000. That's a whopping $2,000 is on the line of unused money. We don't want to leave that on the table!

In this situation, ask your lender to quote you specific costs to lower the rate. You could end up shaving 0.125%-0.25% off your rate using the excess seller contribution.

You can also use seller credits to prepay your homeowners insurance, taxes, and sometimes even HOA dues. Ask your lender and escrow agent if there are any sewer capacity charges and/or other transfer taxes or fees that you could pay for in advance. Chances are there is a way to use all the money available to you.

You can even use seller credit to pay upfront funding fees for government loan types like FHA.

Use seller contributions for upfront FHA, VA, and USDA fees

All government-backed loan types allow you to prepay funding fees with seller contributions.

FHA loans require an upfront mortgage insurance payment equal to 1.75% of the loan amount. The seller may pay this fee as part of FHA seller concessions. However, the entire fee must be paid by the seller. If you use excess seller credit, but it's not enough to cover the entire upfront fee, then you cannot use the funds toward the fee.

VA loans allow the seller to pay all or part of the upfront fee (2.3%-3.6% of the loan amount). The fee counts towards VA's 4% maximum contribution rule.

USDA requires an upfront guarantee fee of 2.0% of the loan amount. The buyer can use seller contributions to pay for it.

What this means for you...

1- You will need a signed buyer broker agreement to protect yourself.

2- Time to hone in your skills and show your value.

3- Partner up with a lender that can help you navigate and succeed in today's market. 

Reach out if I can help!

Aundrea

NMLS 333739
702-326-7866

info@aundreabeach.com
www.AundreaBeach.com

I’m going to wait until interest rates drop before I purchase a new home

Internal voice ...

“I’m going to wait until interest rates drop before I purchase a new home”… Sound familiar? 

This is probably something you have heard or even maybe said to yourself over the last few years, right?

Here is the reality, housing prices have risen every year for the last 11 years, and more than likely will continue to rise.

In 2021 alone, housing prices increased by a jaw dropping 18 percent, the highest on record. Even last year they still rose on average, 2.88% and that’s WITH interest rates on the rise.

Truth is, if you keep waiting for interest rates to decrease, if the last 11 years say anything… sure, you may have a lower interest rate but that won’t matter much when you’re spending (on average) 2.88% more on the cost of that house.

In conclusion, start getting ready now!
So, look for the right opportunity to take the first step in Home Loan Readiness (such as this article!), you can always refinance later when rates drop!

Get ahead of all those waiting, hoping and wishing for things to change and get ready NOW.

REMEMBER: Marry the home, date the rate, divorce the landlord!

As a homebuyer, understanding this relationship can help you make informed decisions about buying a home, and with the prediction of rates dropping this year, it’s crucial to have a leg up in the race to become a homeowner.

Get prepared for the market boom when rates drop by making sure you have everything you need to hear the words “You're Pre-Approved” by working with CMG!

Click Here For Your FREE Consultation!

During your FREE Personalized Consultation, we will walk you through what steps you need to take to become approvable on your home loan specific to your current financial situation.

CMG provides ALL the tools you need to qualify for your loan FASTER.
Failing to plan is planning to fail.

CMG provides a detailed action plan to help you overcome the major obstacles preventing you from getting your loan:

✅ Debt to Income
✅ Credit
✅ Savings/Down Payment
✅ Documentation

Let us help you navigate through the home buying process so that when you are in the best position possible, we can get you back over to your lender and get you that PRE-APPROVAL!