Question 1

Who pays for which closing costs?

Ateeq Chouhan · Accepted Answer

The seller must pay these closing costs (sometimes called “seller’s concessions”):

Commission for real estate professionals
Brokerage fee
Buyer broker fee
Termite report (unless you’re using a refinancing loan)

You (the buyer) or the seller can negotiate who will pay other closing costs such as the:

VA funding fee
Loan origination fee
Loan discount points or funds for temporary “buydowns”
Credit report and payment of any credit balances or judgments
VA appraisal fee
Hazard insurance and real estate taxes
State and local taxes
Title insurance
Recording fee

Note: We require that a seller can’t pay more than 4% of the total home loan in seller’s concessions. But this rule only covers some closing costs, including the VA funding fee. The rule doesn’t cover loan discount points.

Question 2

Who pays for which closing costs?

Ateeq Chouhan · Accepted Answer

The seller must pay these closing costs (sometimes called “seller’s concessions”):

Commission for real estate professionals
Brokerage fee
Buyer broker fee
Termite report (unless you’re using a refinancing loan)

You (the buyer) or the seller can negotiate who will pay other closing costs such as the:

VA funding fee
Loan origination fee
Loan discount points or funds for temporary “buydowns”
Credit report and payment of any credit balances or judgments
VA appraisal fee
Hazard insurance and real estate taxes
State and local taxes
Title insurance
Recording fee

Note: We require that a seller can’t pay more than 4% of the total home loan in seller’s concessions. But this rule only covers some closing costs, including the VA funding fee. The rule doesn’t cover loan discount points.