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Updated almost 8 years ago on . Most recent reply

User Stats

20
Posts
1
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Rick Lucette
  • Investor
  • Miami, FL
1
Votes |
20
Posts

What are Buyer's Closing Costs and Prepaid Items

Rick Lucette
  • Investor
  • Miami, FL
Posted

Hi All,

A friend of mine recently signed an offer to purchase a home. The seller agreed to the following terms: Seller will contribute to $X towards the buyer's closing costs and/or prepaid items. 

I told him that this was likely not a simple credit of $X but rather that that the seller would pay up to $X for closing costs and/or prepaid items. If so, he would like to know what would be considered as closing costs (for instance, closing costs typically include a reserve for taxes, or origination points?) and what are "prepaid items". 

Any help would be appreciated. thank you!! 

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