Thinking about purchasing a home in 2016?

Most frequently asked questions:

1.  I just started looking, can you show me this home?

Well, today's sellers only want to show their home to ready, willing, pre-approved and most motivated buyers.  Think about it, if you were the sellers and spent all day cleaning up and de-cluttering your home to show in best condition and the buyer likes it but can not get a loan to buy it, then it's not beneficial to the sellers, agent who showed the house and particularly the buyer.

Before you go out to find a home, you need to sit down with your local lender, bank or credit union to find out what kind of loan you are qualified for. How much cash down payment do you need and what is the closing cost charges by the bank so you will have the money ready to go.  We do not recommand internet or web pre-approval as there are many factors involved.  Your credit score is part of the equation, not only are they looking for debt to income ratio, availability of down payment and source of down payment are all part of the loan criteria.

2.  Can the home owners consider rent to own?

Typically, homeowners in this area want to cash out and do not want to carry a mortgage.  Think about this for a second, if a buyer can NOT get a regular loan from their local lender,  why should a homeowner take the risk for renters not paying on time, trash their home and spend the money to evict them?  Homeowners are not banks with an unlimited source of funds.  They will not give the renter the deed of the home until the borrowers pay up their mortgage.  Home owners that will do rent to own will demand higher non-refundable cash down payments if the renter forfeit the rent or are late on the rent.   So technically, buyers do not OWN the house and are considered renters only.

Consult with your experienced buyers' agent and let them walk you through the process.





Susan Li

Susan Li

Licensed Associate Real Estate Broker
Contact Me