How to apply a seller credit?

[Carter Henderson]

I am about to close on my first real estate property. Did all the inspections and had my “asks” back to the sellers for them to fix things. They countered with some fixes, a home warranty and an amount of credit off the purchase price.

Should I ask for this credit to be applied to the closing costs/down payment instead? Is there a time value of money scenario here? What would be the most advantageous thing to do?

Thanks for any information here!

[David M.]

@Carter Henderson

By definition a seller credit is just a credit at closing which decreases your cash to close amount

What you are thinking about, or trying to decide between the two, is a seller concession. But usually it’s used differently to roll closing costs into the loan for buyers without the cash. Because it’s peanuts for the loan standpoint, just take the cash. If it makes you feel better, after closing take the credit amount and use it to pay down the loan..

Good luck