what if agent rebate+lender credit is more than closing cost?

[heverlee]

Hello:

Looks like my buyer agent rebate + lender credit is more than closing cost. I was told the extra money can't be used to reduce loan amount. what is the best way of get this $ back?

thanks

 

[usctrojancpa]

Hello:

Looks like my buyer agent rebate + lender credit is more than closing cost. I was told the extra money can't be used to reduce loan amount. what is the best way of get this $ back?

thanks

The buyer agent should cut you a check for the excess rebate that can't be run through escrow right after you close.  All lender and/or seller credits should be applied first towards the buyer closing costs before applying the buyer agent rebate credit, make sure you instruct escrow to do that so you don't lose out on any lender and/or seller credits.  Another way to soak up excess credits is to tell the lender that you want to set up an impound account for property taxes and insurance.  Then after the close of escrow you can close the impound account and get all the money in the account refunded to you since it's your month. What has your buyer agent told you?  Have you ask them about it?

 

[heverlee]

thanks, just talked to my agent that is what he advised me to do except the impound account. I will talk to him about that possibility

 

[usctrojancpa]

thanks, just talked to my agent that is what he advised me to do except the impound account. I will talk to him about that possibility

Yeah the impound account is a great way to soak up any excess buyer credits.

 

[the.irvine]

thanks, just talked to my agent that is what he advised me to do except the impound account. I will talk to him about that possibility

Yeah the impound account is a great way to soak up any excess buyer credits.

hmm if you opt for impound account during escrow, can you close it after a month and get refund? I wasnt aware. Thanks Martin

 

[usctrojancpa]

thanks, just talked to my agent that is what he advised me to do except the impound account. I will talk to him about that possibility

Yeah the impound account is a great way to soak up any excess buyer credits.

hmm if you opt for impound account during escrow, can you close it after a month and get refund? I wasnt aware. Thanks Martin

Yes, as long as it is not required to be in place by the lender or if your loan pricing improved because of the impound account you can cancel/close it shortly after closing and get a check for all the funds in the account within 3-5 weeks.  Always happy to provide valuable information to the TI community.

 

[snjnk]

Can we negotiate final purchase price before close of escrow?
We did all upgrades with the builder.
Can builder side lender help us in deciding final purchase price with the seller?

 

[usctrojancpa]

Can we negotiate final purchase price before close of escrow?
We did all upgrades with the builder.
Can builder side lender help us in deciding final purchase price with the seller?

Good question....in the current market lenders will not be apt to decrease the sales price of the home.  However, if the development is not selling well OR if there is a lot that hasn't sold and is almost done (a "quick move-in" lot) then you might have luck in getting the builder to throw in design center credits and/or closing cost credits to get a deal done.  Remember, you don't get what you don't ask for.