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By John Carlstrom
When buying a home, you may have encountered the phrase seller assist when you start discussing about your approved bank loan. It is important to understand what this means as this will help you in meeting some closing costs. The closing costs are those that were not included in the pricing of the property but you still have to pay as these cover the important requirements like insurance, taxes and the like. When you are not ready for the closing costs, it is good to consider seller assist as an option.
Seller assist is determined at the time when a buyer applies for a loan. The type of loan is determined at the end of the approval process and the conditions and requirements are specified. The pre-qualified loan notes when a seller assist can be applied and how much can be allocated for such.
Basically, a seller assist helps the buyer shoulder other recurring or non-recurring costs that may be associated with the sale. This money is borrowed from the bank or financial institution to be given to the seller once the funds are released. The process ends with the seller giving back the corresponding amount to the buyer to pay for the costs mentioned. This is an assistance that most buyers will appreciate as they can also be allocated for repair or preparation or setting up of other amenities for the home, or just simple save it in the bank for emergencies. When a buyer avails of seller assist, it does not always follow that he is short of cash. A buyer can just take advantage of the assistance since it is available.
What the seller actually gets when the sale is consummated is the total amount approved minus the seller assist amount since this will be returned to the buyer. With regard to agent’s commission, the basis of payment will be less the seller assist amount since it is understood that this goes back to the buyer. The approval of a seller assist is sometimes influenced by the Realtor or the agent responsible for processing the loan or the sale as a whole. It is very important to note that in the process, the bank or the financial institution will assess the value of the property and your capability to pay. These are the factors that determine the chances of the approval rate and the inclusion of seller assist option. With a qualified Realtor, you can ask for their assistance to write the offer and get the option included in the approval. You will be surprised as how agents can expedite the process with favorable results. You can always show some sense of gratitude with token or additional payment that an agent will appreciate.
You always have to note that a seller assist is not always available for all types of loans. It is important to know this beforehand so you can prepare on the necessary costs when this option is excluded in the approved loan. However, if it is included as an option, you can make full use of this assistance for the improvement of the house or for payment of the closing costs. However way you want to use the amount, it is always upon your discretion.
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Source:
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