I am under contract on my first home. I am financing the purchase using a loan with very low closing costs. After the inspection period, the water home’s water heater gave out and the seller offered $1500 seller credits.
I believe my prepaids and other closing costs may amount to around $2000, but I also have an earnest deposit of $4000.
Could someone explain how this works? Do seller credits get applied to closing costs before my EMD? Assuming the loan documentation is correct and the prepaids and other costs amount to a little over $2000, I should expect to get a check at closing for:
$4000 – $2000 + $1500 = $3500?