One of my specialties is Relocation Loans. This is great for people who are being transferred at the request of their company. A relocation loan comes with a relocation letter. What makes my services at Cherry Creek Mortgage so unique is that there are so many needs for the relocating company as well as needs for the buyer.
First, a buyer may be moving to a dream job in a dream area. Those buyers are looking for longer term mortgages (generally), but will consider shorter term ones as well. Then there are individuals who are relocating and accepting the new job because they only want the job as a stepping stone for a job that is higher up in the company. At most...those individuals really look at those jobs as three year stints max. The type of loans that are considered are 3 and, yes, 5 year arms. My suggestion would be a 2-1 buydown maxing the relo company's fee allowances and using seller contributions to have a start rate at 2 or 3 percent lower than the 30 year fixed rate mortgage. For example, a buyer may have a 30 year fix with a first year rate discounted to 3.875% for the first year of the mortgage. Talk about cool for the buyer! The buyer has so many options...but for a short term borrower the wrong option could be expensive. For a long term buyer the wrong option (you don't always need or want a 30 year fixed) can be incredibly costly.
The relocation company has other concerns...making sure that it buys the buyer out of his current home (the one he's selling) and helping them with financial assistance during the course of their move. This includes the transferring company covering costs of generally no less than 1% of the new home acquisition cost, but usually up to 3%, although I've worked with companies that give up to 6% to the buyer. But no great gift comes without a consequence and usually the consequences are tax consequences.
So what should you do? Call me of course. I'll take care of your buyers or you personally. I'm always looking to make friends with a new neighbor. So whether you're moving cross town or cross country...give me a call at 630-417-7172.
Larry
I'd love to put you in this one below....
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