I recently did a Facebook Live video and I shared what I would do if I did not have enough cash to pay for my closing costs.
To set the stage, cash to close is all of the funds required by the buyer of the property to have at and exchange at the closing table.
Cash to close consists of largely two parts.
Part 1 – Down payment
Part 2 – Closing Costs
The down payment is mandatory and must come out of your own pocket. The closing costs on the other hand are treated differently.
You may have heard of the sellers paying closing costs and that is fine and dandy, but what happens if they reject to pay. The answer is….YOU PAY FOR THEM
What if you don’t have the $4,000 – $5,000 to cover the closing costs?
This is what I would do..
I would ask for the agent to send an addendum to the sellers to see if they can increase the purchase price the amount of the closing costs.
For example, originally you got the offer accepted at $110,000 and your closing costs are $3,000. The new purchase price will be $113,000.
The addendum will state the sellers will pay you $3,000 at closing, in which you may allocate to your closing costs.
Sellers are happy because they still get to close for the amount they wanted and you get your closing costs paid.
I hope that made sense. If you have any questions feel free to call or text me anytime!