Buyers are going to great lengths to get an offer accepted in this very competitive market. Buyers know that sellers are looking for cash offers or offers with conventional financing when looking at multiple offers. If you are getting advice to submit an offer with more favorable financing and being told that you can change your financing later and the property is a short sale
BEWARE! Once the accepted contract is submitted to the lien holder it is almost impossible to change the terms. Just had a short sale where the buyer wanted to change from conventional financing to VA financing. This change to the contract changed the net proceeds to the lien holder and the lien holder rejected the change and the buyer is now unable to complete the transaction under the original contract terms. The buyer's agent and lender didn't seem to think this would be a big deal, but it is. This may not be an issue in a traditional sale but with short sales it is a deal killer.
Financing is not the only thing that can't be changed once the lien holder is in receipt of the offer. Buyers names cannot be changed, so be sure to have the full legal name the buyer plans to close with on the offer. You cannot substitute one buyer for another. You cannot remove a buyer. Buyer's agents should be working closely with the buyer's lender to make sure whomever is on the contract is qualified to purchase.
Don't risk waiting for months lien holder approval only to have the deal fall apart because you didn't provide an accurate picture of the purchaser and their ability to purchase. Buyers looking at purchasing a short sale need to be working with an agent who has experience with short sales.
Knowing upfront what lien holders will and won't allow is key to structuring an offer that the seller can accept with confidence and forward to the lien holder for approval is key.
What a great time to be in the mortgage business! Are you surprised? There has been a great deal of moaning and groaning by the media about mortgage companies closing, the liquidity crisis, credit standards tightening and property values falling. What does it all mean? How do you, as a seller or as a buyer, sift through all the information that you are being bombarded with? Underwriting standards – the guides by which loan approval decisions are made – "loosened up" significantly in the last few years. As a result, mortgage loans were easier for people with low credit scores and other financial problems to obtain and new loan products started popping up with extremely adjustable rates and no principal reduction. With the corrections we have seen in housing prices, many borrowers – and mortgage companies – were in over their heads.
And now? Be prepared for your interview with your mortgage professional with your income and asset documentation such as pay stubs, W-2s, bank statements and tax returns. As part of the extremely well capitalized Wells Fargo Family, Pinnacle Mortgage has not experienced the problems many other lenders have. Our sound underwriting guidelines mean that we have the money to lend whether you are looking for a conventional, jumbo, FHA or VA loan. Interest rates are great right now and this is without a doubt the best time to buy in Northern Nevada for the last several years.
Our goal is always to get you the best possible financing available. If you're a first time buyer, you may find that your total mortgage payment is less than the rent you're currently paying! If you're thinking of moving up to that dream home, remember that although your current home may be worth less now than it was, your move-up home will also be less and that difference will be a greater amount than what you will be giving up. If you're an investor, you may actually be able to find a home with a positive cash flow right from the start. Don't miss out on the opportunities that are available in a buyer's market!