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.
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