How much do I need at the closing table with concessions?

I am a first time home buyer and currently in contract. My estimated closing cost is $18,000. The buyer has agreed to a $7500 closing credit. Why is my mortgage broker telling me I need the total $18,000 at signing? Again, I am a first time buyer and don’t have $18,000 in cash after down payment. Is there other options?

1 Answer

I seriously doubt your 'actual' closing costs will be that high. Today's GFE's show every cost associated with obtaining the financing whether's the seller pays it or just the buyer. So, take the GFE with a grain of salt. As far as what you'll need its hard to say without seeing your whole file to know what the purchase price is, how much earnest money you have already put down, what state you are in, etc..Your broker may be telling you that the UW is going to UW based on what is listed in the file based on guide lines. In reality you will only need to pay for the buyer's fees at closing, you also most likely will get a property tax credit from the seller as well, but again, these figures are not part of UW.$7500 should cover most total closing costs in most states, you don't mention if you are paying points or not either, so you should really only need your down payment amount at closing and if you gave earnest money that would reduce even that amount further along with any property tax credits. I will gladly review your GFE if you like. You can email me at I am in Chicago. Thanks, Dan