If you have just submitted your offer on your first home in Lynchburg, Campbell County or Bedford County, you may be inclined to make an offer that might be a little over your “comfort” zone with either what your payment will be, what you qualify for, or what will make you a little short in the wallet.

One way to help your cause is to ask for a little help, and this doesn’t necessarily mean hitting up mom and dad for some extra cash. Turn your request to the seller instead and you may find that not only will you get what you need but you might get a little more “juice” as well.

You should know that both qualified first time home buyers and move up buyers are eligible for a “gift” from Uncle Sam in the form of a tax credit.

You may be getting some money a few months after you close. But, did you know if the seller pays to lower your interest rate, which could help you either qualify or make it a little easier to make your payment each month, that you could be eligible for an additional tax deduction?

The IRS treats “points” or fees paid to lower your interest rate as an item which is deductible on your income taxes and it doesn’t matter who pays them. Let’s say that your seller agrees to pay two points toward lowering your interest rate, which could drop your rate by approximately half a point as an example.

If the amount paid is $4,000, or two points on a $200,000 loan, you will not only get a lower rate but potentially another $4,000 deduction on your income when you file your tax returns, potentially putting additional money in your pocket after you file.

The key here is to make sure when you are negotiating your purchase contract, you ask the seller for a concession for buying down your interest rate.

The concession can be either in the form of a dollar amount requested, a percentage of the sales price, or a percentage of the loan amount. Ask your mortgage professional for additional guidance as to the best path for you to follow.