With the constant change in the financial markets today it must be difficult to know which offers come to you with solid financing. There are a few questions that I have for the agents for the other side so that we may all better understand the psychology. Who wins out of the examples below:
- 97% FHA financing with a DU approval and the source of the down payment verified vs. 20% down conventional financing?
- 100% financing USDA approved in USDA approved area vs. 10% conventional
- 100% financing VA vs. 100% financing USDA on a house that needs a little TLC
- 97% FHA with a gift for down payment from relative vs. cash offer from contingent pending sale
- 97% FHA first time home buyer vs. Investor with more than 4 financed properties
Purposely, these scenarios leave many questions unanswered for all the parties that are involved in the transaction. I want to hear from the agents that have been in the field on what makes the offer better or worse. I have several pre-approved clients where the offer was rejected because it was FHA or it was USDA and they had not heard of this as an option. Maybe I can clarify on my pre-approval why our financing is solid and there is no reason to worry. I think there are many times that the offer at face value looks better from the perspective of the sellers and the agent but depending on the Loan Officer's and the extent of the pre-approval process and their knowledge it may not be the better of the two.
What are the steps that you as listing agents take to validate an offer and make sure that the financing is solid before entering into contract?
Is an offer for 5K less a worse offer if it does not close?
How can I help my clients stand apart from the competition when they are extremely qualified but have little down that they want to part with?
Thank you for the feedback. I will continue in part two to explain the differences between the above examples and how although one may appear better at first why it may not be. I will include the feedback that I have received from you on Active Rain as well. Thanks again and until next time.
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