Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for user4091932

Seller pay closing + prepaids? Low cash options!

Our apartment lease will be up in December and we want to purchase a house, but we are getting married in September and will be using up a significant portion of our savings on the wedding. So saving up for the down payments, closing costs, and pre-paids seems like it's going to be impossible even for a very inexpensive house. 

Here's an example:
December total savings possible = $7500
Desired minimum savings after purchase = $1500
Mortgage amount: ~$90-110,000
Down payment: 5%
Closing costs: ~$2000
Pre-paids: $1500-1800

Total cash needed w/o seller contribution: ~$9000

As you can see, that can't happen by December! However, I've heard that sometimes sellers will allow you to pay more for the house and in turn they will pay for closing costs. Can you also have the seller pay for prepaids?

In the case of a $100,000 home, we would need a down payment of $5000, but then if we could offer to pay $104,000 for the home, would most sellers be willing to pay for our closing costs and prepaids, allowing us to purchase the home with a total of $5200 cash(extra $200 from the added down payment to equal $104k)?

Thanks!
  • July 04 2013 - Wichita
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (2)

Profile picture for Rebecca Marvel
Why oh why would you spend any kind of money on a wedding?  Set up a realistic budget for wedding and house, stick to it.  You'll be OK.

Careful offering more than asking on some properties!  If the house doesn't appraise you could face other obstacles.

Again, please reconsider spending any kind of money on a wedding.  Isn't it more important to get the house you want then to blow a bunch of dough on a "one day" event?
  • July 04 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You can always try offering the seller a little more for the house if you don't think the seller would accept a full price offer and pay your closing costs. Just keep in mind that the home you are purchasing will need to appraise at the 'sales price' to make this work. Another option would be to obtain a slightly higher interest rate so you can receive lender credits that will cover some or all of your closing costs and prepaid items. Many of my clients select a loan that requires zero out of pocket cash for fees at closing. Ask your lender if they can give you a spread of rates showing slightly higher rates to help you absorb more closing costs with lender credit. Good Luck!!
  • July 04 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.