Buying a house can be a stressful situation, and when you’re looking to get the most out of the buying process. Since most people are looking to get cash back on their mortgages, and closing, there really are only a few ways that you can take advantage of this.
Look for a Realtor that gives you cash back - Websites like HungryAgents.com are awesome when it comes down to searching for a home. Here, you can request Realtors that will give you a part of their commission back to you. For example, a Realtor may offer 25% of their commission back. So, if they are going to get the typical 3%, you’ll get .75% back. Sure, it doesn’t sound like a lot, but let me put it this way.
If you were to buy a $400,000 house, the agent is going to get $12,000 with his 3%. Now, you’ll want to take your .75% and apply it to the $12,000, that’s going to leave you with $3,000! That’s enough for a few pieces of furniture, or upgrades in your house.
Use a cash back card – You’re going to find with this situation that you’re going to need a high credit limit, and you’re going to need to basically be able to pay cash. If you’re looking for an investment property, you can potentially use your cash back credit via the process. Let’s say that your card gives you 1% cash back. If you buy a $65,000 investment property with your credit card, you’re going to get $650 back. As long as you pay the credit card bill in full when it comes, you can take advantage. It’s up to you to decide if it’s worth it or not. Some people think it is, while others don’t.
These are really the only two ways that you can take ahead of time if you’re looking to get some sort of cash back at closing. It’s up to you to do your homework with Realtors. You may find that if you go with a realtor that gives you commission back, that you’re going to get one that’s in it to get more money for him/herself, rather than help you.
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