Step 10:  Getting Financing for Your Buyers

Most buyer of your home will have to get a loan, too.  Having a basic understanding of financing will help you talk with your buyer prospects.  There are many different kind of loans available for buyers today.  It used to be quite simple: VA (Veteran's Administration), FHA (Federal Housing Administration) and Conventional loans with 10% down, 20% down or more.  Conventional loans have expanded greatly.  In the 1980's 5% down loans appeared and then in the 1990's 3% down loans came on the scene.  Those were followed quickly with 0% down Conventional loans...with less fees required than 0% down VA loans.  Buyer's with excellent credit can even get a loan for their purchase price AND closing costs.

Buyers with very good credit...and even with less than perfect credit can get the same "deal" if a seller will agree to pay the buyer's closing costs.  Yes, you saw that right.  Buyers with less than perfect credit can get a 0% down loan with the seller's paying their closing costs.  The buyer gets a first for 80% of the purchase price and a second for the 20% "down payment".  Sure that sounds like something is wrong, but most of these are done with the same lender giving both loans, so nothing is hidden from the lender.

When you are working with a buyer for your home, make sure they have at least a Pre-Qualification letter, if not a full Pre-Approval letter from their lender.  Make sure the lender gives you the terms of the loan so your contact will reflect the loan the buyer is getting.

Depending on where you live and the lender, it should take 4 to 6 weeks to close on your home sale if a loan is involved.

 
Go on to Step 11 of Selling a Home

Linda Grissette
Keller Williams Realty West
Office: 636-229-8722
Linda@Grissette.com
Linda is a licensed Broker-Associate in the State of Missouri.

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