Buying a Home–Making an Offer
January 18th, 2010
When buying property, when you make an offer, ask for the incentive funds that will be applied toward your non-recurring closing costs. By doing this, you are able to lower the amount of out-of-pocket cash that you need to close the deal. If not, you would be required to come up with a down payment and the equivalent closing costs.
Closing costs come in two types: (i) the non-recurring costs, and (ii) the recurring costs. Non-recurring costs are those things that you only pay once, like points and fees You do not have to pay these costs again. Recurring costs are things that you continue to pay, like insurance and property taxes over the time that you own the home. Most of the loan programs available allow you to apply incentives to pay non-recurring costs, with the exception of FHA and VA loans.
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