"Shelby and Lois provided timely and great communication. Shelby’s knowledge allowed me to get a great rate for these times. I always felt like a person and not just an anonymous client."
lisa jill k
Success Stories – How A $20,000 Seller Credit created +$40,000 in Buying Power
Success Stories – How A $20,000 Seller Credit created +$40,000 in Buying Power
This is a great example of how helpful a Seller Credit can be.
I had clients who were moving from another state. They could only use one income to apply for a loan, which limited their options even though they had a large down payment. To keep their debt-to-income ratio within acceptable limits, they could only afford a monthly payment of about $2,096. In the area they were looking at, homes were priced around $350,000, but they weren’t finding any homes they really liked.
That’s where I stepped in. Instead of choosing a temporary or 2/1 buydown, which wouldn't affect their debt-to-income ratio, I suggested a permanent seller buydown. I arranged for a $20,000 seller credit. This credit helped to lower their interest rate to 5.125%. With this new rate, a $2,096 payment allowed them to look at homes priced up to $415,000. Thanks to this, they found their dream home, made an offer, and, because they had strong credit and a good down payment, they got even more good news.
They were granted an appraisal waiver, which meant they didn't need a property appraisal. On top of that, we managed to close the deal in just two weeks. This story shows how beneficial a Seller Credit can be in the home buying process.