How to get cash back at closing? - Posted by Chyna

Posted by Chyna on April 24, 2006 at 14:17:51:

Aside from environmentals and appraisal, I’ll have to pay one point ($7,200) to mortgage broker and two percent of sales price ($18,000) to my real estate agent who’s acting as a buyer’s agent…no commission split. So that’s more 25K at the outset, without even including regular fixed and variable closing costs. That’s why I’m looking for some way that I might not have to take it out of pocket.
Thanks,
Chyna

How to get cash back at closing? - Posted by Chyna

Posted by Chyna on April 24, 2006 at 08:11:58:

I’m negotiating for a small apartment building that I want to buy with 20% down. I doubt it will appraise at higher than the selling price. Since my closing costs will be very high I’d like to have them included in my mortgage but that will mean less than 80% LTV and apparently I can’t do that without a much higher rate.

I’ve heard about getting “cash back at closing.” How does that work? Could I use this towards my closing costs if I can set it up right?

As always, thanks for your help,
Chyna

Re: How to get cash back at closing? - Posted by wes

Posted by wes on April 24, 2006 at 13:46:35:

When you say your closing cost are high, what are we talking about.

Yes a commercial appraisal cost about 5-7 times the amount of a residential appraisal. But for most small commercial loans (with the exception of those that will require envionmental reports) aside from the appraisal, the other costs are about the same.

Perhaps you should tell us what your cost are estimated to be and if they are too high, someone here will let you know and hopefully save you some money…