Seller Concessions can be used for closing costs like:
- Lender Origination Fee
(A "Lender Credit" cannot be used for this fee,
instead choose a higher "Bogey Rate" to cover the Lender Origination Fee) - Processing Charge
- Paid down the rate with "Points" (We call this a "Birdie Rate")
- Appraisal Charge (Assigned by another 3rd party)
- Appraisal Final Inspection (Assigned by another 3rd party)
(If home needs final construction work) - Lender Title Insurance Policy (You shop for this)
- Title Company Escrow Fees (You shop for this)
- 1 Year Home Owner's "Hazard Insurance" (You shop for this)
- County & City Recording Fees (Determined by your home's location)
- County & City Transfer Taxes (Determined by your home's location)
- Impound "Escrow" Accounts (Determined by your home's location & insurance company you choose)
(2-3 Months Hazard Insurance & Property Taxes) - Other closing costs
In addition to Seller Concessions...choosing a Higher "Bogey Rate" or having a "Mulligan Rate"
Can get you a "Lender Credit" that can be applied to all closing costs above, except the Lender Origination Fee.
It benefits the seller helping the buyer purchase their home by offering concessions to the seller for the following reasons.
First, the seller will be able to sell the home faster...and get on with their life helping the seller relocate to a new job or close on another home they are building for example.
Second, while the seller may be giving concessions they are offset by the seller not have to make additional mortgage payments while waiting for the home to sell.
Lastly, Apex Mortgage Brokers, your Incredible Lender, can close a purchase loan in 2 to 3 weeks instead of the 45 days to 60 days that other lenders take. Our average closing time is 17 days... even when ordering an appraisal.
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