Real Estate Closing Costs.
This is probably one of the most confusing things for people to understand and I will try to lay it out very simple. 100% of the time the closing costs come out of the buyer’s pocket even when a contract may say seller’s contribution to closing equals $5000. So let me explain.
The Georgia Association of realtors contracts purchase, and sales agreements are written with a block that indicates the purchase price. There is another block that indicates the seller’s contribution to closing. For instance, as the buyer if you desire to roll your closing cost into your purchase, we would first determine an offer price for the house.
Let’s say we are willing to offer $100,000. If your closing costs are $5000. The only way to roll it into your loan is fine greasing the purchase price to $105,000 and then we ask the seller to contribute the extra $5000. A lender will not loan you $100,000 plus an extra 5000 for the closing costs. However, the seller can contribute the closing cost.
We accomplish that by adjusting the purchase price. And yes, I hope that makes sense.