Q: I am in the process of closing on a home in Tn. Are the closing cost supposed to come out of the sales price offer?
I was told by my lender to pay out of pocket for closing instead of deducted from the sales prices . Need to know correct process by law
A: There are a few ways to handle a real estate closing. Typically, when you purchase a house, you pay cash out of pocket for the closing costs. When you apply for a loan approval, the lender usually gives you a closing cost worksheet so you can know what do expect. Another option, is depending on your lender/loan type, a lender may allow you to finance the closing costs. And a last option is that you could ask the seller to contribute cash toward closing costs for various reasons. It sounds like your lender expects you to pay cash at closing.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
