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Advice From A Trusted Lender - Winning In A Seller's Market

Annisa Baker

Purchasing a home in a seller’s market if you have a house to sell can be tough, but if you’re ready and working with a great team you’ll be the one getting the house! Many times people don’t realize how brutal it can be until they write and offer and lose the house they love.

First and foremost trust what your Realtor is telling you, they know the market. When they tell you to get your ducks in a row financing-wise, do it! It’s the first step in the process.

Get to a trusted lender right away to find out what your options are. Unfortunately in a seller’s market, there are more buyers than homes so typically sellers get to pick and choose which offer is best and yours may go by the wayside if you have a house to sell. Think about it, what would you do if you were a seller and you had two offers with the same terms other than one has a house to sell and the other did not. I’m pretty confident that you’d choose the one without the sale contingency. A trusted lender will give you your options and let you know if you are in a financial position to write an offer without a sale of home contingency. I can’t say it strongly enough, be ready and be prepared!

Here are a few things my clients have done to be prepared for a purchase in this market:

They set up a home equity credit line on their current home before they even start shopping so they have the funds available to purchase without the sale. When the purchase happens they drew the funds from their credit line. Depending on available cash some people may leave some funds on the line in case they need additional funds until their home sells. The payment on most credit lines is interest only monthly. Once their home sells the credit line along with their primary mortgage is paid off. You will have to prepare for a double mortgage payment for a bit but if your prepared, have funds available and price your house right it won’t take long to sell and the mortgages will be paid off.

Another great option if you have cash available is to put a lower down payment down on the house initially and do a recast on the new loan after the sale closes. Once your home sells take the funds from the sale and apply the remainder to the principle balance of the new loan and do a recast. A recast modifies the loan payments to be in line with the new balance. We charge $150 for a recast, it’s much cheaper than having to refinance. Not all mortgage companies do recasts. It’s really about knowing your options so you can choose what’s best for you.

Working with a trusted, experienced and creative team is important as you go through the process of purchasing a home with a house to sell. Call me today to find out your best options! I’m always happy

to help!

If you have any questions feel free to go to my website:

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