I was talking over an offer with a buyer last week for a property that he was interested in making an offer on. We had made an offer about 30 days before, but the seller selected another offer from a different buyer. My buyer and his family had seen this home, and they really liked it. So the listing comes around again, and we prepare the best offer possible based on his pre approved loan amount and the request for 'Highest and Best'. As we talked through the numbers, I reiterated to the buyer that he has to think about the money in two different ways.
First the offer we were making which includes the offer price and seller concessions are one set of numbers and represent one financial path we are on. So our offer price of X and our requests for seller concessions of A for the closing costs, B for the home warranty, C for the refrigerator allowance and D for the carpet allowance, is one set of numbers that leads to the seller looking at a Net Offer of Y.
Secondly the offer price and the loan amount he was approved for are another set of numbers representing another financial path we are on. The offer price of X and the FHA Down Payment of 3.5%, the Upfront Mortgage Premium, the Annual Property Taxes, the Monthly Mortgage Premium, the Interest Rate, and Escrows, is the other set of numbers and they impact the monthly principle, interest, taxes, and insurance payment he will be responsible for making.
So both financial paths are side by side, and the mortgage professional and I are there to help the buyer reach the best possible destination - a successful closing. Two money trains headed for the same depot with no deadly collision!
For more information about buying or selling real estate in Metro Atlanta, please call our office at 404 923 4210 or 404 246 3210. Thank you and we look forward to serving you!
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