Found 1 blog entry tagged as seller credits.

By Chris Colgan

A lower purchase price can reduce the amount you borrow. A seller credit can reduce eligible closing costs you pay out of pocket. The better choice depends on whether your bigger constraint is cash at closing or the cost of carrying the loan. First, the home still needs to be worth the price you agree to pay.

Before you ask a seller for $15,000 off, have your lender show you what that same $15,000 could do as a closing-cost credit. A $15,000 price cut does not necessarily mean you need $15,000 less cash at closing.

Aerial view of a residential neighborhood in Gainesville, Virginia.

Residential neighborhood in Gainesville, Virginia. Photo supplied by Chris Colgan.

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