Money Management

What would the total mortgage amount be if you offered 82000 including the 3 percent seller's concession?

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2006-08-09 03:36:41

These are regular Fannie mae/Freddie Mac guidelines..... I am

not talking about any usual programs. Ok, you offer $82,000 with 3%

seller's concession--this means the seller is getting $82,000 for

the house minus 3% ($2460.00). The seller will also have to payoff

any liens on the property so you as the buyer will have a clean and

clear title. You as the buyer will pay $82,000 for the home, and

have a credit of $2460.00 towards closing costs. Closing costs are

any and all costs needed to clear the deal. $2460.00 doesn't mean

that-- 1. you don't have to have a down payment, (it depending on

the program you applied for), 2. you don't have to have any of your

own money at close because all programs require the buyers to have

a certain amount of their own money-- and that you can prove you

have had that money for the last 2 months. (You can't apply and

figure you will have the money from your paychecks by the time you

close. It will not work otherwise you would have already saved that

money--not to mention that the underwriter for the lender will not

approve your loan until everything is there; and 3. you can't

figure that the $2460.00 is enough to pay all closing costs because

more times than not --that $2460.00 will not be enough. Especially,

when a full year of fire insurance has to be paid and escrows for

taxes are needed along with an appraisal, attorney costs, the new

lender's costs, inspections etc.... The mortgage amount--well, how

much are you putting down? 3% your money=$79,500(rounded down to

the nearest hundred)is the mortgage amount --5% ($4920.00) =

$77,000 is the mortgage amt. Not putting any money down, then you

are financing 100%--$82,000.

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