Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The bank or mortgage company is getting the “down payment” on your loan. The seller will get paid in full so it doesn’t make a difference to them how much you put down. As long as you qualify for the loan... you’re down payment is of no consequence to them.
Wrong.
Sellers definitely care.
And, the Sellers definitely receive the down payment.
Mortgage company will never see the down payment.
The bank or mortgage company is getting the “down payment” on your loan. The seller will get paid in full so it doesn’t make a difference to them how much you put down. As long as you qualify for the loan... you’re down payment is of no consequence to them.
This is just not true. The seller does care how much you put down as there is more flexibility to shrink a downpayment to compensate for an appraisal miss in a hot market, for example.
This is just not true. The seller does care how much you put down as there is more flexibility to shrink a downpayment to compensate for an appraisal miss in a hot market, for example.
That would be on the buyer, not the seller. The important thing for the seller is that buyer being qualified to get the home loan. Why would I care if the buyer could shrink the down payment in a “hot market”? A “hot market” would indicate multiple buyers. I don’t care how much they put down as long as they qualify for the loan. Everything after that is in the buyer.
Last edited by Sydney123; 02-07-2021 at 06:16 PM..
That would be on the buyer, not the seller. The important thing for the seller is that buyer being qualified to get the home loan. Why would I care if the buyer could shrink the down payment in a “hot market”? A “hot market” would indicate multiple buyers. I don’t care how much they put down as long as they qualify for the loan. Everything after that is in the buyer.
Because when it fails to appraise, and it will, they can put 10% down and use that other 10% to cover the appraisal gap. When you put 3% down, there is no way to shrink your downpayment to cover a lending gap.
I have not read the whole thread - so apologies if this is redundant...
What we've been doing to address this exact issue is showing a pre-approval letter stating that the buyer is indeed qualified for 80% LTV, but writing the offer with a smaller down payment. The agent can then explain the reason for them wanting to hold back funds, if asked. Most sellers "get it".
Very often there is also "appraisal" language written into the offers--usually stating what amount of appraisal short-fall, if any, the buyer can absorb when bidding over ask. Sometimes it might say "must appraise at (list price)", sometimes it's the offer price, and sometimes it's in between somewhere. I've seen all variations get accepted.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
