Too many buyers are concerned about "price" and not enough buyers think of the whole picture including terms, interest rate and closing costs!
I have been a Realtor in Boise, Idaho for over 20 years and I learned many years ago that if I can't help get a buyer through the loan process then I won't be able to get paid. I have had to learn how to package a buyer into the best possible loan options, not just find them a home they want to buy!
There are many potential barriers to getting into a home so over the past 20 years, I have learned to work through and arround most of them! Here are some common barriers and solutions:
- Lack of down payment: consider different grants or loan programs or second tier loans;
- Lack of closing costs: negotiate with the seller to pay them instead of discounting the price;
- Need more time on credit: Lease purchase or have a home built so that when your time period is up the home is completed per your needs and budget.
- Debt ratios too high: consider doing a 3/2/1 buy down or 7 year ARM so that you can "afford" more debt by reducing your front end ratios;
- Debt ratios too high: consider prepaying some of your debt so that you have less than six months to pay it off so it won't have to count against you (you don't have to pay it off in full);
I have also used grant money and second loans to pay for closing costs and even down payments! Sometimes, it makes more sense to figure out the "terms" for a loan before you make an offer based on price! For example, on a $100k home, 3% closing costs noted by some of the lenders would mean the buyer would have $3,000k to come up with at closing plus their down payment. If you offered $97k for the house, you would still have 3% of that number or $2,910 in closing costs plus your down payment. Therefore, if you are trying to conserve cash, why not offer full price at $100k and have them pay all your closing costs instead? At today's interest rates, that only makes your payment about $18 more a month so it would take you about 13.8 years of paying the extra $18 a month to finally catch up to the difference!
It pays to think outside the box! If you want a Realtor that is willing to be more than just a chauffeur unlocking the doors of homes for you to look at, I would be honored if you would call me to discuss your needs/wants in Boise, Idaho. I have been a Realtor in Boise for over 20 years and have probably dealt with about any issue that may come up in the purchase or sale of a home. I am ready to put that experience to work for you!
Specifically in Boise, Idaho; there are some great programs to consider like:
- Boise City Affordable Housing Program;
- Neighborhood Housing Services;
- Idaho Housing and Finance Association;
- Rural Economic Community Development programs;
- Many banks also have niche programs available for low to moderate income families!
Comments (20)Subscribe to CommentsComment