Closing Cost?

[Rasheed Chambers]

Hello All, 

I have a bit of a dilemma, I have been pre-approved for a FHA loan and I am currently in the process of making an offer on multifamily property in the northern NJ area. This will be my first property, I have used the BP rental property calculator and the numbers for this property looks good. The issue I am having is that outside of the down payment for the property I have maybe 2,000 to 3,000 dollars left for closing cost. I have been given a closing cost estimate of 7 to 10 thousand dollars for closing cost. It would realistically take me about 5 months to come up with that kind of money. I was advised by my lender to request a concession, but I am not to sure about how to go about asking for one. I do have an agent who would be doing the asking but I don't know how to much should be requested for the concession. If I ask for 5,000 thousand and the seller counters with 2,500 I would still kinda be in the same place I was before. If I ask for 10,000 will the seller think that its to big of a request and discard my offer, please note that it is not my intention to offer the seller there asking price. Are there any other options out there? Am I asking the right questions? Any input would be much appreciated

[Crystal Smith]

•  $7K to $10K is quite a big spread for closing costs.  Go to 1st American Closing Costs Calculator & get a more accurate estimate of your closing costs.
• If you only have $3K left for closing costs what are you going to have for reserves when something happens on the property?
• The seller will think less of you if you make an offer you can't close on because of lack of $, so don't worry about what the seller thinks.  Ask for the concessions.