There is a difference to buy a house with only $10,000 and to buy a house for $10,000. Well we will start this article by saying you need to first have $10,000. Once you have the $10,000 you will use this for a down payment and to cover the cost of your home inspection. All other closing costs, which include your tax, insurance escrows and everything else can be paid by a third party who is not by you.

 

Your lender will probably ask you to pay for the appraisal upfront, but you can ask to have that included as part of your closing costs (which we highly recommend). Tell your lender that you are getting a seller credit and that you want to discuss interest rates and lender pricing that includes a lender credit.

 

However, we know that such costs as the following are still on your mind; the closing costs, escrows, and everything else that will be due at closing. However; all of the “everything else due at closing” costs can be paid with a seller credit and a lender credit.

 

We also want to state that it is important to discuss seller paid closing costs with your real estate agent in the beginning of the home buying process. Make sure you work with your realtor to determine what your strategy will be sticking to before you make an offer on a house and include the seller paid closing costs.

 

Let’s guess that the total closing costs, escrows and everything else is at $10,000 and the seller agrees to allow $8,500 of that in the form of a seller credit or go towards your closing costs. The remaining $1,500 can be paid using a lender credit resulting from what is known as par plus pricing.

 

Par pricing is market pricing, or what the interest rate is offered with no additional cost (which is points) to the mortgage consumer. Due to this, a seller credit, a lender credit and your $10,000 are all the necessary things to have for you to become a homeowner!

 

So add up what you have managed to save, save more through a yard sale, or even through eBay selling, and see if you can get enough together to take a shot at becoming a homeowner.

 

After all, all you really need is $10,000.