Est. monthly payment
$0
Down payment
Closing costs & prepaids
Seller credit toward closing costs
Est. cash to close
Your earnest money deposit counts toward this.
For home buyers
Before you write the offer,know your numbers
The price on the offer is only part of the story. What you pay each month, and what it takes to close, depend just as much on how you structure it. Try a few strategies here, then let's talk through the one that fits you and wins the house.
1Set up the home
What you'll
really pay each month
Enter the home and your loan. The payment includes taxes, insurance and HOA dues, so there are no surprises later. These are planning estimates; your loan estimate will have the exact figures.
2Structure the offer
Three ways
to write the same offer
Asking the seller for a credit can lower your payment or your cash to close. How you ask changes what the seller takes home, and a seller who nets more is more likely to say yes. Compare the three below.
$
Put the credit toward
Seller nets = offer price minus the credit, before the seller's own commissions and costs. A 2-1 buydown is priced with Fairway's temporary buydown subsidy method; a permanent buydown assumes each 0.25% off the rate costs 1% of the loan. You qualify at the full note rate with a temporary buydown.
3Plan for the appraisal
If it comes in low,
know your gap
Your loan is based on the lower of the price or the appraised value. If the appraisal comes in under your offer, you cover the difference in cash, renegotiate, or walk away if your contract allows. Offering over list, including "price up, credit back," makes this worth planning for.
$
Try a value below your offer price.
Appraisal gap
Offer price minus appraised value
Loan amount
Cash to close at full offer
Down payment plus the gap, plus closing costs, less any credit toward them
Extra cash vs. no gap
What the low appraisal adds
What makes
an offer strong
Price matters, but sellers also weigh how sure and how smooth the sale will be. Your financing can make your offer the easy yes.
Try another scenario1
Get fully pre-approved first
A pre-approval with your income and assets already reviewed tells the seller your financing is solid. I can have a letter ready to match each offer you write.
2
Ask for credits, not just a lower price
A credit toward a buydown or closing costs often does more for your monthly payment than the same dollars off the price. Stay within your loan program's limit.
3
Decide your appraisal cushion ahead of time
Know how much of a gap you could cover in cash before you offer over list. It lets your agent negotiate with confidence.
4
Keep your credit steady until closing
Hold off on new cards, car loans or big purchases until you have the keys. Changes can affect your approval.
How much
a seller can credit you
Each loan program caps seller contributions, measured against the lower of the price or appraised value. The strategies above flag any credit that runs over.
| Loan type | Your down payment | Seller can pay up to |
|---|---|---|
| Conventional | Less than 10% | 3% |
| Conventional | 10% to 25% | 6% |
| Conventional | More than 25% | 9% |
| FHA | Any | 6% |
| VA | Any | 4%, plus normal closing costs |
Conventional limits shown for a primary residence. Jumbo limits vary by investor and are checked here against conventional rules.
Let's win the house
Meet Becky Elder
I'm a mortgage advisor with BE Home Loans at Fairway Independent Mortgage. Tell me about the home you're after, and I'll run your real numbers, price out the strategies that make sense, and get your pre-approval letter ready for the offer.
Call or text
253-332-7882Email
becky.elder@home.com