Who pays for legal fees?

Each party pays their own attorney’s legal fees.

Why are seller concessions capped?

Generally, sellers agree to pay closing costs in return for a higher sales price. Buyers might prefer this because it frees them from a demand for cash at a time when they face many financial demands. A few thousand dollars extra on the mortgage payments – spread out over 30 years – might seem preferable. Overall, allowing this practice to go unchecked would artificially inflate home prices. Lenders might not be able to recoup their losses on a home if it went into foreclosure, which would lead to tightening credit and a larger chill on the housing market.

What are no-closing-cost mortgages?

These are mortgages that roll closing costs into the mortgage, much like a buyer might seek to do through a seller’s concession. As a buyer, you’ll have to pay more for your mortgage because you are borrowing more. Ask your lender whether they have a no-closing-cost option, but remember that you’re simply deferring the costs – and paying interest on those costs – rather than eliminating them.

Can seller concessions make the appraisal process difficult?

Yes, seller concessions can make the appraisal process difficult. If you offer to buy the home for a higher price in return for seller concessions, you may have a problem getting an appraisal that justifies the additional costs, which will make it hard to get the financing you need. Make sure the price offered is warranted based on comparable sales.

Who Pays Closing Costs: Seller Or Buyer?