if seller pays closing costs, will that include pre-paid taxes, insurance, and points?
Good question, points are closing costs but taxes and insurance are not, they are prepaids. As Hamp said, if you are going for all settlement charges except the UFMIP to be paid by the seller, word the contract to read all closing costs and prepaids to be paid by seller. While prepaids are an expense to close they are not considered closing costs and if the contract says the seller will pay up to $5,000 in closing costs, then if the actual closing costs are less than $5K, the difference could go unused.
