Communities may have miscellaneous requirements such as installing “low-flow” toilets, water & seismic retrofit items, etc., prior to close of the transaction.
Taxes you owe are prorated by the day and of course all liens of any type must be paid off.
Some of the Buyer’s closing costs may be paid for by the seller if negotiated. With the cost of living in our economy being so high, buyers often have trouble saving money for a down payment. Coupled with the prices of homes being high, lenders have come up with solutions for buyers to enable them to purchase property. These are programs that require very little, or no down payment (100% financing). In these transactions, because the buyer is "cash poor", he requests the seller to pay for all or part of his "closing costs," and it simply becomes part of the negotiation. The amount requested rarely exceeds 3% of the purchase price. One of the most common costs requested are the "points" for obtaining their loan.
What are points?
Points are the money paid to the lender that allow the lender to make loans at a regulated, lower than market interest rate and still obtain the desired rate of return.
How are points calculated? They are calculated on the loan amount…one point is one percent (1%) of the loan amount. So 2 points on a $200,000 loan would be 2% of $200,000 or $4000.00.
BRE#00981087
Vivian Long,
Real Estate
Broker
(818) 571-0435
REMAX/OPTIMA 333 E Glenoaks Suite #100 Glendale, CA 91207