If I have a seller credit towards closing costs, and the actual costs are less, what happens to that money?

If closing costs are less, then those funds are lost? You cannot receive back in cash. What type of loan are you doing?

Getting seller concessions is great, but the rules are very clear.. the seller can only contribute to your "Actual Closing Costs".. so if they gave you too much, then the title company would make the adjustment during the preparation of closing documents.. The extra concessions cannot be applied to your down payment, nor can it go to lower the sale price.. If there is an HOA, you could take the extra and pre pay the monthly fees, but certain lenders only allow you to pre pay for no more than a year.. depending on how much is left over, you could buy a home warranty with the extra funds as well.. But if you don't use the funds, then they go back to the seller. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347