By Tammy Engel
Mortgage Advisor
Notes From a Seller
Mortgage Matters
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Now that I’ve been on the other side of the desk, let me share a few personal notes about being the seller in a real estate transaction.
It’s really fun to hear your Realtor call to say there’s an offer coming in on your house. What isn’t very fun is seeing that the offer is dramatically below the list price. This is especially so when pains were taken up front to review current market activity as to set a listing price that was at the low end of the range. We’re also in a competitive market at present, so the buyer’s Realtor should take that into consideration when crafting an offer.
Add to that a request for 3.5% of the price as a seller credit to pay buyer’s closing costs. Knowing mortgage finance, an actual calculation was that the buyer needed as little as $2000 to cover all their closing costs, not the $6125 requested. Whether that was an over-eager Realtor guessing as to a figure, or having an ill-trained loan officer at the other end, it meant less seller proceeds and a “no” to the offer.
Just to finish that rant: Again yesterday a credit union quote came across my desk charging 0.5% more in interest rate and almost $8000 more in fees than my local competing quote. You’ve got to shop around, folks, the range of charges is astonishing.
Any mortgage advisor worth their salt should show you options in how to structure your new home loan. In our market, when you ask your seller to help with closing costs, if you add that amount to your offer price, the seller nets the same sale proceeds. As long as the house will appraise for the slightly higher amount, everybody wins.
It’s interesting, too, to see versions of loan pre-approval letters. From my desk, those letters include a credit score and actual underwriting findings. Some other lenders write a generic letter that gives the seller no indication whatever about how the buyer qualifies. It’s even more fun to see out-of-town letters come in.
Because, when buyers choose a friend-of-a-friend or an internet lender, the appraisal becomes a challenge. Most recently, a buyer chose an Orange County lender who was charging $1000 for an appraisal report and still could not locate anyone willing to drive to Tehachapi.
When you’re ready to buy a house in Tehachapi, at the very least interview local mortgage providers before you stray out of town. And make sure your lender and Realtor are communicating to give your seller the best possible offer -- help them say “yes” to your deal. All it takes is a little teamwork to get you into your new dream home.
Tammy Engel is your local Mortgage Advisor. She’s been working for your best interest since 1990 and welcomes your call about purchase, refinance, and reverse mortgage at 661/822-7325
