The simple answer is – maybe.
It can be difficult to save the necessary down payment. It’s a large sum of money. Then you find out you also need to save the closing costs, which can be considerable. Closing costs can include legal fees, bank fees and the inspections and appraisal fees. You’ll need to prepay interest and taxes, possibly Homeowners Association Fees. Don’t forget the insurance – Homeowners, and maybe mortgage insurance or flood insurance. These are just some of the costs. The total can easily exceed $7000 and possibly more.
So – how can you get the seller to pay the closing costs?
Well – they probably won’t pay the costs, but maybe we can get the seller to front the money for you.
Here’s how it works. Once we reach a sale price agreeable to both the buyer and seller, we’ll ask the seller to raise the price of the home by $7000. The seller will agree to pay $7000 of your closing costs from the proceeds of the sale. The net result to the seller is a wash.
The bulk of that $7000 gets added to your mortgage amount. Instead of paying $7000 out of your pocket, that $7000 added to the mortgage will increase your monthly payment by about $35.00. It will take about 17 ½ years to pay that $7000. And you’ll probably have moved to a different home by that time.