Having just represented a buyer in a "FSBO" situation, I wondered why my buyers had to go through so many hoops... Thanks to Avi Parmar from TD Canada Trust for providing the following.
Financing Issues from the Lender Perspective
When Trying to sell you Home “Sale by Owner” / Buying a Home not listed by a Licensed Realtor:
- Extra due diligence in the Mortgage approval process by the lender.
- Deal is never auto approved on the system like other MLS deals.
- Full appraisal: To confirm Condition of the house from inside and Market Value.
- Underwriter Reviews all documents manually to confirm buyer’s employment. More supporting documents have to be provided in every transaction.
- Down payment: Lender always try to make sure that the Seller is not helping the buyer with the down payment. They may request 12 months of bank statements to verify funds . Buyer has to provide more docs to support his income and down payment.
- Property does get Red Flag if multiple buyers have tried financing.
Call me before you try to sell your home on your own! I can help prevent these problems.