Cash back at closing

[Daniel H.]

Quick question. If I purchase a property with some cash back at closing, do I pay the higher price and then the seller gives me a check for the cash or do we take that out of the price at closing?

Example. I pay $100,000 with $5,000 back at closing.

80% loan.

Do I pay $20,000 for the down payment and then get $5k back at closing or do I just make $15,000 for the down payment and the seller gets the extra money in the check from the bank?

So if I was to make an offer on this house, I would make the offer for $100,000 with $5,000 back at closing. Loan amount of $85,000?