I have a question about credits at closing versus a reduced sale price. Which one is to my benefit and better for me?

It is always just math... I love math, as it isn't biased... Consider all the variables. What is the credit amount? What does it do for cash to close? How does that feel? Is less cash out the door more comfortable for you? If you lower the price, how does that effect payment? Any good loan officer will just run the math for you, and the answer will esily show itself to you. In MN, WI, and SD, visit www.TwinCityHomeLoans.com

Most likely a reduced sales price as you will be paying on the loan amount until it's paid off or refinanced. That being said, there are many more factors involved in answering your question completely.

Hi Janet, Ii will depend on your financial circumstances but it really boils down to be about the same when it is all said and done. If you have the liquid cash in savings to pay the costs out of pocket upfront then that is the best way to go with reduced sales price. Now if you do not have a lot of liquid cash for the costs then you will have seller pay them as a closing costs credit in which you then do not come out of pocket for. But the final overall payment will be just about the same when you factor it all in. If you want to crunch # call me Rob Oliveira Province Mortgage 508 802 0935 If if is me I take the reduced sales price. Thank you

This is completely dependent on your financial goals and limitations. For instance if you don't have much in reserves and want to limit your initial cash investment, it would be better to ask the seller to pay some or all of your closing costs and pay a little more for the home. It is important to NOT underestimate the benefit of having reserves once you are a home owner. This is a discussion you should be having with the Lender that is qualifying you for a mortgage, if he/she is not, you may what to at least talk to someone else for a second opinion.

If you don't have enough money to pay for the closing costs, or would like to have a little bit extra left over in the bank after closing, then the seller credit at closing is the way to go.