2007-08-25 17:27:47 · 7 answers · asked by Jepache 1 in Business & Finance ➔ Renting & Real Estate
No, closing costs are separate and typically 2-3% of the sales price of the property.
2007-08-26 08:08:59 · answer #1 · answered by Christopher B 6 · 0⤊ 0⤋
No, Down Payment does not include closing costs. When you negotiate the price of the house you can ask for the sellers to pay your closing costs or give you money towards the closing costs (typically 3%). Do not get confused when a lender tells you that you will have to put a certain amount such as 5% down because unless you have negotiated with the seller as mentioned above then you will have to bring the down payment and the closing costs.
2007-08-26 00:37:36 · answer #2 · answered by Princessd1010 2 · 0⤊ 0⤋
No.. The Closing cost can be figure in, but, usually the down payment applies to what you are putting down on the house. Most people will pay the closing cost up front so as to not finance it for the length of the loan
2007-08-26 00:35:55 · answer #3 · answered by Mr. Cellophane 6 · 0⤊ 0⤋
In this market I'd make the seller pay for it... known as a "sales concession". Seriously, if you really want to buy a home now you better be getting a great deal. There are tons of foreclosures everywhere.
Are you using a realtor? Is he/she giving you a rebate on the purchase price? If not, find a new realtor and don't pay the full 6% especially if they are the listing and selling agent. In that situation you should negotiate atleast 2% back to cover any closing costs if seller will not pay for them.
2007-08-26 01:08:01 · answer #4 · answered by Richard S. 3 · 0⤊ 0⤋
In short, NO, but here is a way it can:
When you make an offer on a property ask for a "SELLER CONCESSION" What does this mean? Well let's say a property is listed for $200,000. You are probably going to offer about $180,000 no? Consider offering $190,00 with a 3% "Seller Concession" You will pay $190,000 for the house, the seller will get $184, 000 and $6,000 will be set aside to cover your closing costs.
You may be asking why the seller would go for this? Do the math. He's going to get his price. He was probably prepared to accept the $180,000. Not only that but when he does his taxes he gets to write off your closing costs. He paid them. Why wouldn't he go for it.
Some realtors will overlook telling you about seller concessions because the don't earn a commission on the portion of the purchase price applied to the concession. I said some, not all.
Congrats on your purchase!
2007-08-26 00:38:56 · answer #5 · answered by loancareer 3 · 0⤊ 0⤋
No, sorry the down payment does not include the closing cost and the closing cost can be pretty substantial. You need to check this out with your Realtor.
2007-08-26 00:37:30 · answer #6 · answered by kattsmeow 7 · 0⤊ 0⤋
No , the down payment is the % (preferably 20%) you put down against the sell price .
Closing costs are extra , but total closing would be the fees plus the down payment .
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2007-08-26 00:36:13 · answer #7 · answered by kate 7 · 0⤊ 0⤋