The costs of buying a home may be daunting. For example, you may have finally saved enough for a down payment on your first home, with a little left over to buy the furniture you will need. Then you hear about having to pay closing costs you weren't anticipating, and this may seem like a real setback.

One way to cover such a shortage is to make the sellers an offer that calls for them to credit you for some of the closing costs. As a rule, the sellers may pay a maximum of 3 percent of the sales price if the buyer is putting five percent down. If the buyer is making a down payment of 10 percent or more, the seller can contribute up to 6 percent of the sales price to cover the buyer's closing costs. Some items, such as prepaid taxes and the first month's mortgage payment, must be paid by the buyers. Sellers may also contribute to paying the appraisal, points, title insurance, settlement attorney fees, state or local transfer taxes and similar items.

Keep in mind that if the credit is included in the price of the house, the appraiser will have to justify the amount, based on sales prices of similar homes in the neighborhood.

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Lucretia Pinnock
Pinnock Real Estate & Relocation Services, Inc.
115 E. Pennsylvania Ave.
Southern Pines, NC 28387
910-692-6767
Fax: 910-692-4141
lucretiapinnock@NUMBER1EXPERT.com

Whatever your questions, I'll help find the answer. I have been a full time real estate professional in Moore County, North Carolina since 1985. And as one of America's NUMBER1EXPERTST and an avid reader of professional journals, I understand national and local trends in the real estate market. Staying informed is critically important to my clients in the turbulent Real Estate Market that exists. Because of this level of professionalism, I was honored by Realty World-America and Keller Williams Realty as a Top Agent. I was named as Realtor of the Year for our Association of Realtors in 2003. I am well equipped to guide you through all your real estate needs in the Pinehurst area and take that opportunity and responsibility very seriously. I guide a Team of Real Estate Professionals to provide the highest level of service and look forward to providing that level of service to you and your friends! Call or email me today!

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