Why does a seller care about how much you put down
Why does a seller care about how much you put down A buyer asked me why does a seller care about how much you put down. He was doing a FHA mortgage and putting down 3.5%, and we lost the home because the other person was putting down 20%. The reason why sellers chose a buyer that puts more down is really two fold. Number one FHA mortgages are for people that might have credit issues or have limited amount of money. Because a buyer is doing a FHA mortgage a seller can assume the buyer may have past credit or money issues that may side rail the mortgage. A person that is doing a conventional mortgage and putting 20% down usually have better credit scores and show that they have the ability to save. They may or may not have more assets in a 401K or other savings than a FHA buyer. But as a seller you may go with somebody with 20% because of their ability to save shows the bank that they are more qualified than a FHA buyer. If the bank thinks that way you as a seller should too. That is why sellers care about how much you put down. A 20% down buyer’s mortgage should close easier than a FHA buyer. Buying Novi real estate or buying Redford real estate Michigan trivia and interesting Michigan facts series part 1 [wnt_grid keyid=”1″ title=”Homes for sale in Ann Arbor MI” maptype=”disabled” ownertype=”all” paginated=”true” sortoptions=”true” maxresults=”50″ search_mode=”form” primarysearchtype=”active” searchtype=”city” state=”MI” single_family=”y” condo=”y” min_price=”200000″ max_price=”1000000000″ listing_status=”Active” county=”Washtenaw” city=”Ann Arbor,Ann Arbor Charter,Ann Arbor Township” /]
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