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I have closing end of this month and my closing cost is 20k. My agent is giving me cash back 12k and seller is giving me repair cost 14k for the repairs which he doesnot want to repair after home inspection and giving me credit on closing day. So i am exceeding closing cost by 6k. Is there any rule that rebate from agent should not be more than certain amount??? Is ther any rule that agent can be only allow to pay certain amount towards closing???Is there any rule that i can take extra 6k cash from seller or agent with out paying taxes on that in a legal way. Do i have to include repair cost in closing since that the amount for my house repair which seller was suppose to repair but instead he is paying me for the repairs.
I have closing end of this month and my closing cost is 20k. My agent is giving me cash back 12k and seller is giving me repair cost 14k for the repairs which he doesnot want to repair after home inspection and giving me credit on closing day. So i am exceeding closing cost by 6k. Is there any rule that rebate from agent should not be more than certain amount??? Is ther any rule that agent can be only allow to pay certain amount towards closing???Is there any rule that i can take extra 6k cash from seller or agent with out paying taxes on that in a legal way. Do i have to include repair cost in closing since that the amount for my house repair which seller was suppose to repair but instead he is paying me for the repairs.
I advise you to engage an agent who is qualified to help you with a home purchase. That way, you will not have to drag out the sordid details on the internet.
Failing that, you might talk to your lender, who hopefully is qualified to help you with your home purchase. The bank is the party who decides how funds are handled at closing.
You may not pocket any money (unless you have an excess earnest money deposit or another way to put it, your deposit is more than your down payment).
Money from the seller (and agent) for closing costs cannot exceed actual. If money is stated in contract it's for repairs, the repairs must be paid on the HUD.
Seller and Agent credits are limited, based on loan type, occupancy, and loan to value. So, if you have a 5% down loan (conventional), you are limited to 3% of sales price. FHA, you can go to 6%....but again, in no case, may you exceed actual.
The rest are dead on......your agent should be walking you through this. But why is he giving you so much money back? It reeks of rookie agent and could be very costly in other ways (as in you over-paying for property or your credits getting totally screwed up) or he could be your brother. Don't want to be Debbie Downer, just trying to get the full picture because this is where you benefit from an experienced agent.
Good Luck!
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Any Suggestion???
