What are "seller concessions"? Seller concessions are the seller contributing money from their proceeds to the cost of your closing. Many sellers will do it to "sweeten" the deal and make their home easier to sell.

Save Money NOW
The seller can legally pay up to 6% on some programs - 3 to 4 percent is standard. This money can be used to pay your closing costs - such as lender fees, title, appraisal. This becomes a credit when you go to closing. For example: Four percent of a $200,000 home price is $8,000 - that is $8,000 you save in closing costs.

Save Money OVER TIME
You can also ask a seller to help you lower your interest rate. Lowering your rate will stand for the life of the loan. If the cost to reduce the interest rate is 2% of the loan amount, the seller on a $150,000 loan amount could contribute $3,000 to lowering your rate.

There are limits to what a seller can contribute - ask your Real Estate Professional and your Loan Officer to help you understand what makes sense for you.<br type="_moz" />