I’m going to explain to you a little bit about financing and your financing options when buying a house in the Georgia housing market. Also, I will talk about what financing is important as you go out and you start looking for homes. Remember we are trying to sell you to the listing agent and the sellers themselves. One of the critical pieces that they’re going to be looking at is what type of financing you are using to purchase a home. So I’m going to kind of go through the steps of what’s really good financing and what’s not so great financing and the challenges that you’re going to have throughout that whole process.
So I’m sure you’ve probably all heard the term “Cash is King” right? Well, it is. So if you are buying cash, you are you’ve got great buying power! It’s the least amount of risk for a seller on the other side, you don’t have to worry about being pre-approved by a lender and then that preapproval falling apart or anything they know you’ve got the cash. So Cash is King. It is the best from a negotiating standpoint when you got the cash you’re in the highest negotiating position you possibly can.
So then after cash is all these other different layers of financing, the most popular one that we like to use is conventional financing. Really what that means is that you’ve got some money to put down on a property. You’re not needing an additional layer of insurance or anything like that. Once again, when you’re using conventional financing It’s going to be really important for us to show that to the seller. And once again, that’s not a very real high-risk type of loan. So the probability that you will get approved for that type of loan is probably pretty good. So that’s usually pretty good in the eyes of the seller. They’re going to want to see that they’re also going to want to see just how much money you’re putting down on the property itself. If you’re putting a significant amount of deposit down on the financing itself once again, that’s less risk for the bank. And in turn, it’s going to be less risk for the seller with your final approval,.
The next type of financing after that is your VA loans, FHA loans, and then there are a couple of other loans out there as well, but those are a little bit higher risks. Typically those loans are used when you don’t have that large of a down payment involved. So you’re borrowing very, very close to what the value of the property is. Those are higher-risk loans because you might not get the approval of the financing and in the eyes of a seller, once again, you’re just bringing in a little more risk to the seller, and your financing not being fulfilled. So when they accept your offer with one of those higher-risk loans it’s just the higher risk for them. And in today’s market is as competitive as it is. We’re looking at the financing big time, and we’re also reaching out to the lenders that you choose to have a conversation with them to see how strong those buyers in their financing is. So we’re checking all those boxes to make sure that when we accept an offer from a listing standpoint that the borrower is actually going to get approved for a loan. So those are really, really critical pieces. So financing is a big deal in today’s market.
That’s about all your financing options when buying a house. Make sure you reach out to your local agent give us a call. We’ll be more than happy to kind of go through that whole process again and explain to you the benefits and the challenges that you have with the financing that you have decided to move forward with. Hope everybody is having a great day. And that was helpful. Talk to you soon. Thanks.
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