This is my first home and I am confused about my contract. I put in a bid on a home and it was accepted (YAY!). It's a HUD home that was up for $216,000. We bid $215,000 with seller paying closing costs ($6000).
So my question is this. My contract says I am financing $215,000 and the SELLER is paying $6000 (closing costs), $6450 (Selling Realtor commission), & $6450 (Buying Realtor commission). The contract says that "The net amount due Seller is $196,100."
If the SELLER is paying the $18,900 difference, why am I financing $215,000 instead of $196,100 (minus the $7,525 down payment, of course)?
Someone help... I don't get it.