LENN, WE HAVE 5% OF OUR OWN MONEY COMING IN BUT NO MONEY LEFT OVER FOR FOOD.
Anyone selling real estate today knows how persnickety lenders are about
Money to Close
Gaps in Employment
I don't fault the loan officers. They are working under very strict and difficult circumstances. This is one reason why communication between the loan officer and the buyer's agent is so critical.
AGENTS WORKING TOGETHER. One of my agent referrals in Montgomery County was not going well because the buyers were ready to buy, but short on cash to close. The referral agent whom I've known for years called and said that he didn't believe they would qualify since they were short of money. We were sure that home would sell quickly because it was a jewel.
We made a lender referral with a known local loan officer. The contract was written and ratified but the buyers were not quite prepared with the money needed to get a fully approved loan. They needed to show 5% of their own money to be able to close their loan. Closing costs would be 3% from the seller and the balance in a GIFT from the buyers' parents.
Fortunately the sellers were very comfortable with the contract, carefully prepared to show the Buyer's Financial Statement, the "Pre-Qualified" letter from a local lender (with permission for the listing agent to speak with the buyers lender), the evident employment stability of the buyer (husband) and the sellers thought that the buyers' baby was adorable.
WHERE WAS THE MONEY TO CLOSE GOING TO COME FROM?
1. A gift from the buyer's parents for 2%, with the gift letter signed and the money deposited in the buyer's account.
2. Income stream from the buyer deposited IN FULL in the buyers' bank account.
3. No withdrawals from the account until the 5% was accumulated, which would be in about 5 weeks.
4. 3% seller contribution.
O.K. Sounds good and the numbers work with Mom and Dad and the sellers paying closing costs.
Every dime accounted for except that left no money for food. Details, details.
"I'll bring the bananas." What we all did was take turns taking the buyers to the grocery store weekly and buying food for the coming week. They already had a good supply of staples and needed only fresh fruits, fresh vegetables and bread. We each combined shopping for our own homes with the needs of the buyers and pretty soon, that 5% was in their account.
This type of buyer representation takes very open communication between all involved in the transaction.
I'm known as the "agent with the bananas" and I've received two referrals from those lovely buyers and one referral from the seller.
Courtesy, Lenn Harley, Broker/Agent, Homefinders.com, 800-711-7988.
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