When it comes to home loans, I always thought: fixed rate, 20% down, 30 years. But after a conversation or two with real life lenders, I found out there are so many possibilities.
The housing market is shifting. Sellers want to get their homes sold now rather than later. Buyers are hoping for more favorable terms and are starting to get them. Lenders have programs that can help both buyers and sellers achieve their goals.
I recently spoke with Corey Husted, a mortgage advisor with Intercap Lending, who helps buyers figure out how to get into a home of their own. He shared that the old school 20% down is not a necessity and that there are all kinds of loan programs for all kinds of borrowers.
He also starts the lending process by finding out about his buyers. What is the maximum they want to pay each month? Where do they want to live? What does their credit look like now? What is their time frame? How much have they put aside in savings? How much can that grow by the time they want to buy? It’s not just crunching numbers; it’s learning about where the buyer is, where they need to be, and how to get there.
I also spoke with Paul Tyrrell of Epic Lending and learned about some great loan programs to help sellers. Those interested in selling their home want to entice potential buyers to consider their home over another. The first program Paul described is called a 3-2-1 buydown. This loan lowers the interest of a fixed rate by 3% the first year, 2% the second year, and 1% the third year. As interest rates rise, and buyers become hesitant, sellers could offer this incentive to get their home sold.
Another Epic Lending loan program for sellers is called Ready, Set, Sale which offers home sellers short term money to renovate and update their home. Taking care of deferred maintenance and beautifying their home can be just the thing to entice buyers, and reduce the “For Sale” time period.
It all starts with a lender. They have programs that can help their clients, buyer or seller, accomplish their goals. If you are interested in learning more about how you can buy a new home and/or sell your current one, come visit me over at FirstHomeEd.com and let’s look at possibilities.
All good things,
Diana Cohen
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