When we're working with Warren County home buyers one of the earliest questions we're going to ask you is about financing. You might think that's intrusive, a bit nosy to ask how you plan to pay. After all, when you walk into a store they don't ask you at the door how you plan to pay do they? So why is real estate different?
Because in real estate your financing can be a help to getting your home, or a big time hindrance. Fact is depending on the type of financing you need, some homes may not even be POSSIBLE for you to buy, especially when it comes to condos.
While each financing type has its pros and cons for the buyer, they also come with pros and cons for the sellers too.
In general, sellers prefer financing in the following order:
- CASH (no worries about the bank or anything else!!)
- Conventional loan (enough down payment to show you've got skin in the game and solid financial footing)
- VA/FHA/USDA and other loan down payment loans make the sellers a bit more nervous, especially since the seller may have to clear some "extra" hurdles due to loan appraisal repair requests (been there and done that, flaking paint on a deck led to a two week delay in closing).
- Owner financing. You need a lease/purchase? Or want the seller to help out in a major way? Chances are most sellers aren't in the financial position to even consider this.
Add in specialty type homes (mobile homes, manufactured homes, condos) and there might be extra requirements that don't match up with a loan program that fits you. It may even require rethinking what type of financing you plan to use.
And just one extra note about condos: MOST condo complexes in our area are NOT FHA or VA loan certified, so unless the condo association wants to apply to get certified, those communities are off the table for consideration.
One last reason the type of financing matters? It's information we have to provide on the purchase contract and as we mentioned, the type of financing MATTERS to sellers. And if we say one thing on the contract and then need to change later, the sellers need to agree to that change to keep the contract valid. So again, VERY important to get preapproved at the start so you know your purchase power AND the type of financing to be used.
Ready to talk more details about buying or selling a Warren County area home? Please reach out to us at 513-520-5305 or Liz@LizSpear.com.
We look forward to hearing from you!
Serving Warren County area home buyers and sellers,
Liz and Bill aka BLiz