This is a YouTube video titled "Bring Less than your Down Payment at Closing" containing a single-speaker explanation about how to reduce the amount of money needed at closing when purchasing a home by using earnest money, appraisal fees, and seller credits. The content was created on August 24, 2023, and focuses on real estate financing strategies.
If everything's structured perfectly, there is a way to come into the closing with less than your down payment. Here's how to do it. Let's say that your down payment is $10,000, but up front, initially on the contract, you put $1,000 earnest money down. And let's say you paid $500 for an appraisal. So you've already invested $1,500 in total into your deal. Well, if you have enough seller credits to cover all of the closing costs, that $1,500 can come out of your $10,000 down payment to meet your minimum contribution is the term for it. So 10,000 dol, minus 1,500 that you already put in. You walk into the closing table with $8,500 and you've got your new home.
