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Real Estate Tips

First Time Buyers >The Seller May Pay

The costs of buying a home may be daunting. For example, you may have finally saved enough for a down payment on your first home, with a little left over to buy the furniture you will need. Then you hear about having to pay closing costs you weren't anticipating, and this may seem like a real setback.

One way to cover such a shortage is to make the sellers an offer that calls for them to credit you for some of the closing costs. As a rule, the sellers may pay a maximum of 3 percent of the sales price if the buyer is putting five percent down. If the buyer is making a down payment of 10 percent or more, the seller can contribute up to 6 percent of the sales price to cover the buyer's closing costs. Some items, such as prepaid taxes and the first month's mortgage payment, must be paid by the buyers. Sellers may also contribute to paying the appraisal, points, title insurance, settlement attorney fees, state or local transfer taxes and similar items.

Keep in mind that if the credit is included in the price of the house, the appraiser will have to justify the amount, based on sales prices of similar homes in the neighborhood.

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Real Estate Trivia

Q	What is the world's tallest monument?
A	The stainless steel Gateway Arch in St. Louis, MO, designed by architect Eero Saarinen and costing $29 million to build, is 630 feet high.
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Augie & Calla Bertao, REALTORŽ, real estate agent and broker for Hollister, San Juan Bautista, Gilroy, Morgan Hill and Aromas, California home listings, property and land for sale - NUMBER1EXPERT

Augie & Calla Bertao
Bertao Real Estate Group
330 Tres Pinos Rd. Ste., F-2
Hollister, CA. 95023
License #:01821492
Office: 831-637-7253
Cell: 831-524-5400
Fax: 866-699-2372
Email: augieandcalla@bertao.com
Email: wesellhollister@number1expert.com
Augie and Calla have served San Benito County since 1986. They are a full time husband and wife team with over thirty years of combined real estate experience. As consistent "Top Producers", specializing in single family residence and relocation services, Augie and Calla are committed to serving you with professionalism and excellence. Call us for our professional advice.

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