gregorygarver.com

[RoadHouse]

I am a first time home buyer, i make between 50 and 60K a year and my wife makes about 20k part time. I wasnt planning on buying for about a year but we came across a great deal on a house from a retiring relocating couple asking 124k. The mortgage companies i have contacted all want 5% down 7% intrest (about 6k for down payment and 3k+ for closing). I can swing the down payment with cash i have on hand but i dont think i can come up with the extra 3k+ for closing for a couple months. We really dont want to lose this house we can easily afford the payments of about $1050 a month. Is there any way we can work with the sellers to cover costs or roll the costs into the mortgage does anyone know a broker who can do that in michiganOne lender said the mortgage allowed for %6 seller contribution not sure exactly what this means thoughI asked a specific question, not if i would feel better if i saved for another year or if my children will be dead of carbon monoxide poisoning. Just pretend im a responsible half way intelligent person who is cautious and can pay my bills on time. im not trying to buy a million dollar house i cant afford

[condoinvestor1229]

Make your offer contigent on the sellers paying your closing costs. Most mortgages will allow up to 3% sellers contribution to a mortgage, but some won't allow any. Check with your lender to make sure this contribution is permitted.If you don't have a lender yet, ask friends and family for recommendations for lenders in your area. Local lenders will know of local programs you can qualify for, and there are undoubtedly some good ones out there in Michigan.Edit: OK, I'll give you the benefit of the doubt that you are responsible and at least a half way intelligent person. =)The reason I suggested a mortgage broker is that they often deal with multitudes of plans. Credit unions and such only deal with what plans they have in house, typically only a few.If you are concerned about closing costs and such, get a good faith estimate of closing costs before you sign up. Then if you are comparing various lenders, you can compare apples to apples. 7% interest rate isn't great, I think you can do better unless your credit is mediocre.What 6% sellers contribution means is that the seller can contribute up to 6% of your closing costs, which should cover the vast majority, if not all. This comes off your sellers bottom line. Say the asking price is $124,000. You offer $115,000, plus the seller to contribute up to 6% of the closing costs. You have essentially offered $108,100, because the seller will anticipate paying $6,900 of your closing costs. HTH!Good luck!

[ywait]

You do not need a mortgage company. Try a credit union, they give great rates and less in closing costs. A bank would be a second choice, same as the credit union, but could cost a little more. Typically mortgage companies are for people that cant get financing at a bank or credit union. Mortgage companies make a lot of money on your mortgage where a credit union is owned by its members. They make it a service for its members, and therefore dont charge all the fees a mortgage has to charge. If your credit is good, there is no reason you cant get financed at a credit union. Even if you dont have an account at a credit union, you can always open an account once you know if you qualify for a mortgage with them. In the purchase agreeement ask for the seller to pay all closing costs if that is holding you from buying the house. I am a broker in Michigan but sounds like you have all worked out except your financing. A seller pays for a broker so they probably wouldnt want to pay the cost of a broker. You can email me back if more questions.

[jdt]

While you could ask the sellers to kick in money, wouldn't be feel better to wait a year and save the necessary funds that you need? Are you sure the interest rate is a "fixed" rate? Make sure. There are several other associated fee's that you probably aren't aware of. I suggest you know what and how much those are, like house insurance, appraisal, etc. And are you planning to have an inspection done? $375+. If not, you should. The cost of a new furnace could be as much as $2500. A number of years back a family lost their children to carbon monoxide, because they didn't have an inspection.Write the offer "contingent" upon the inspection. That way if anything is seriously wrong with the house, and the sellers won't pay to fix it, you can walk away. You probably should have used a Realtor to help you with all of these things. Especially if the seller is willing to pay their commission instead of you.