Closing Costs and Financing Incentives
There may be times
when, as part of your offer, you request the seller to pay all or a
portion of your closing costs, or provide some other financial incentive.
One common request is asking the seller to provide funds to temporarily
buy down your interest rate for the first year or two. Such incentives
can be especially effective if a buyer is tight on money or pushing their
qualifying ratios to the limit.
Whenever you ask for
incentives such as these, you will probably find the seller less willing
to negotiate on price. After all, what you are really asking for is have
the seller to give you some money to help you buy their house. The end
result is that, for a little relief in the beginning, you are willing to
pay a little more in the long run.