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Closing Cost Credits – Revisited

Credits for Closing Costs on a purchase contract should just be for “Closing Costs”, and not for only “Non-recurring Closing Costs.” Very few lenders restrict-seller credits to only “Non-recurring Costs” these days. There is no reason to restrict credits to only non-recurring costs; it just requires the buyer to bring in more money.

In addition, if a borrower or buyer is “cash tight,” requests for seller credits should be very aggressive (ask for a lot). If the credit ends up exceeding the actual closing costs, we can charge “extra fees” to use up the entire credit, and refund those fees after close of escrow.

Our cash-tight buyers love these post-close rebates for repairs, move-in costs, etc. Many of our Realtors purposely ask for excessively large credits so their buyers can get refunds at close.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167