When we act as both your real estate agent and mortgage broker on a purchase transaction we will credit back our loan commission. Our lender paid loan commission with all lenders is 1.25% of the loan amount. In the example above, we are looking at an 800K home purchase with a 640k loan amount. This equates to an $8,000 credit to the buyer. There are three ways to take advantage of our offer you can buy down to lower your interest rate, apply the credit towards closing costs, or offer a little more to secure the home of your dreams.
Lenders provide interest rate pricing at either a premium, discount or at par. An interest rate with a premium means the buyer is getting a credit back from the lender at that particular rate. An interest rate that is priced with a discount means the buyer needs to pay a little extra to achieve that rate. An interest rate that is priced at par means the buyer is neither getting a credit or paying a discount. For example, if a 6.125% rate is par pricing and we provide an $8000 credit to our buyer they can use that credit to buy down the rate to about 5.75%, please keep in mind that rates fluctuate so it is best to contact us for more exact numbers for your scenario. There are many factors that impact interest rate pricing like loan amount, credit score, and property type to name a few.
When you are searching for a home, typically the things that are top of mind are purchase price, down payment, and monthly payment. However, you must also factor in closing costs when knowing how much to save for your home purchase. Typically closing costs are around 1% of the purchase price. However, there are many factors that go into that final number for all closing costs. 1% of an 800k purchase would be $8,000 so that buyer credit would really help to cover a majority of those costs.
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1775 Indian Valley Road, Novato, California 94947, United States
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