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#2152378 - 11/06/17 04:23 PM Seller credit on LE
mdog76 Offline
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Joined: Jan 2007
Posts: 645
If the seller is agreeing to give a percentage of the purchase price toward closing costs, is that required to be listed on LE? If so, what happens if the purchase price goes down and we have stated a certain amount on LE because isn't a seller credit 0%?

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#2152407 - 11/06/17 07:09 PM Re: Seller credit on LE mdog76
PCBDebbie, CRCM Offline
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Joined: Aug 2015
Posts: 153
A seller credit would be reflected as such on the LE. The seller credit is not tied to a tolerance.

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#2152418 - 11/06/17 07:39 PM Re: Seller credit on LE mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
So it could fluctuate through out the process then?

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#2152423 - 11/06/17 08:16 PM Re: Seller credit on LE mdog76
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
Correct, mdog76. A lender credit is treated as a negative closing cost and if it goes DOWN from the LE (except when involved in the pricing) it's treated as a cost increase under the 0% tolerance rules. But a seller credit is not subject to tolerance rules (the costs it pays for may be, however).
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