Here’s what you need to know before working with buyer clients.
Do you primarily work with buyers? If so, how can you best communicate crucial information to them about purchasing a home? Here are a few things your buyers need to know before hitting the market with you.
The good news is they don’t actually need a whole lot of money to buy a house, but they must be able to afford the monthly payments. So when you’re working with your lender, have them go through a detailed pre-approval process. Don’t rush it; make sure they’ve done a thorough buyer consultation so that the borrower has a really good picture of what they need.
How much does it actually cost to get into a home? This depends on the loan program. Your buyer can actually get in for 100% financing, so you actually can come in with zero money down, depending on the program. However, your buyer will still need cash to pay for closing costs.
“Your buyer might be able to secure 100% financing.”
If your buyer can’t qualify for a 0% down loan, they can use an FHA loan, which typically requires 3.5% down. Even with a conventional loan, you can go as low as 5% down. However, many lenders provide down payment assistance programs no matter what type of financing your buyer is using.
Keep in mind that there are income limitations with these programs. So if your buyer makes too much money, they’re not going to qualify for some of those down payment assistance programs because they probably don’t need it.
There’s plenty more to consider when it comes to helping a buyer purchase a home. Call or email us if you have any questions. We’d love to hear from you!
