Finance
In Utah, seller concessions at closing are often used to:
AReduce the seller's commission obligation
BHelp the buyer cover closing costs, effectively allowing a lower out-of-pocket requirement✓ Correct
CIncrease the seller's net proceeds
DWaive the lender's underwriting requirements
Explanation
Seller concessions (contributions toward the buyer's closing costs) allow buyers to finance more of their upfront costs. They are commonly negotiated as part of Utah purchase agreements, subject to lender limits.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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