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Just to make sure I understand you wanted the seller to pay for $3000 of your closing cost and that was it. Then your agent didn't ask for any closing costs in your offer?
I spoke with her about it last night, and she is going to rebate 1% of the sales price, which amounts to $1700. Not ideal, but it is what it is. I won't use her again, nor will I recommend her. Expensive lesson to learn!
Your contract probably has a financing contingency. If you can't get approved for a loan without the seller's $3K contribution, you'll need to get proof of this from your LO and then go back to the seller. Tell them they need to either renegotiate or lose you as a buyer.
I'm sorry this has happened to you, it's stressful enough without an error of this degree. I agree completely with this response. If the pre-approval letter clearly states that you need $3k seller assistance and you're not getting it, then your LO may not consider you approved for this loan. If that's the case, then you'll need to have your agent notify the seller immediately.
****In Texas we have specific number of days (determined during negotiation) to get financing in order. Check your contract, or with your agent, and make sure you're still within in the allowed time.
[quote=Silverfall;22185660]What are the additional $3,000k on top of traditional closing costs? I'm kind of with Brandon that this sounds dubious to me. Typically you ask for closing costs which includes prepaid property taxes and insurance, lender and escrow fees. What other closing costs do you have that aren't included in that and why do you need to line item it with two different amounts?[/quote
Closing costs do not include prepaids and interim interest. These are prepaying future bills which are part of ownership not financing(obviously except the interest). Closing costs are fees incurred in conjunction with financing. The LO sees the objective view of a clients finances and most likely wanted the funds to cover the prepaids because probably A- client didn't have the funds themselves or B- couldn't spend the funds to meet reserve requirements.
What are the additional $3,000k on top of traditional closing costs? I'm kind of with Brandon that this sounds dubious to me. Typically you ask for closing costs which includes prepaid property taxes and insurance, lender and escrow fees. What other closing costs do you have that aren't included in that and why do you need to line item it with two different amounts?
Closing costs do not include prepaids and interim interest. These are prepaying future bills which are part of ownership not financing(obviously except the interest). Closing costs are fees incurred in conjunction with financing. The LO sees the objective view of a clients finances and most likely wanted the funds to cover the prepaids because probably A- client didn't have the funds themselves or B- couldn't spend the funds to meet reserve requirements.
In my area, when a buyer asks for closing cost assistance from the seller, it says right in the default wording of the contract that it is for use on "closing costs, lender fees and prepaid costs", so although they are called different things, we include them all into the seller paid buyer's closing costs category.
What are the additional $3,000k on top of traditional closing costs? I'm kind of with Brandon that this sounds dubious to me. Typically you ask for closing costs which includes prepaid property taxes and insurance, lender and escrow fees. What other closing costs do you have that aren't included in that and why do you need to line item it with two different amounts?[/quote
Closing costs do not include prepaids and interim interest. These are prepaying future bills which are part of ownership not financing(obviously except the interest). Closing costs are fees incurred in conjunction with financing. The LO sees the objective view of a clients finances and most likely wanted the funds to cover the prepaids because probably A- client didn't have the funds themselves or B- couldn't spend the funds to meet reserve requirements.
The OP could pay all the closing costs. That was the problem. If the OP couldn't it would be a no brainer to deny financing but the OP clearly stated they could get financing without the closing cost allocation. As such they were going to be out $3,000. Now they are out $1300 which still stinks. I think the agent should have stepped up to plate and corrected her mistake.
In Oregon we include our prepaids and interim in our closing costs and sellers pay them all the time on behalf of buyers. Remember this is a national forum so what you do in your state is likely different than others. East coast and west coast do things very differently.
In my area, when a buyer asks for closing cost assistance from the seller, it says right in the default wording of the contract that it is for use on "closing costs, lender fees and prepaid costs", so although they are called different things, we include them all into the seller paid buyer's closing costs category.
This is our verbiage too. We all refer to them as closing costs...even Lenders.
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