October 27th, 2023 4:04 PM by Linda Holley
This week, I sat down with lenders Nicole Azzarello and Shawn Beaudoin with Motto Mortgage because I'm working with both buyers and sellers in this "shifting" real estate market. What's a buyer to do when they have credit card debt, a car payment, and it's time to move? Stuff happens, whether it's a job relocation or moving back home to care for an elderly parent. Buyers and sellers muster up the courage and move ahead but they exercise prudence and find the right professionals if they want to meet their long-term financial goals.
If you don't remember anything else about this blog, please remember this: OPTIONS, OPTIONS, OPTIONS! Lenders have many types of loan programs that may work for you. If you're thinking about buying, get the financing arranged in advance, or you may be risking your earnest money deposit if the loan is not approved. Got one like that today, too!
One of my buyers is getting a "cross collateral loan" because he needs to sell his home first and it needs some work. A cross-collateral loan can be a second mortgage or home line of equity. The home serves as collateral for the two debts. It's also possible to cross collateralize the two properties with two different lenders.
Once a Buyer has their financing arranged, they can take their time and look around in this shifting market. If they are holding back because the home they like needs things done--such as flooring, new windows, or a roof--a good lender can finance the home with the future repairs. But don't make the mistake of overestimating upcoming repairs when putting an offer in on a home. Get estimates from contractors first and take the guess work out. Confident buyers make confident offers, and your lender and Realtor will help make the highest and best offer possible.
Don't forget to add the contract addendum that protects buyers if they can't get insurance, and the number one reason for that is a roof with active leaks or an older property.
Many buyers are still in the game--even in this shifting market--because they understand the importance of building generational wealth. Some buyers lose out when they put in lowball offers to save $10,000 rather than making $40,000-$80,000 net worth over the time of ownership. This is a reasonable way of achieving long-term financial goals (per Shawn Beaudoin, Motto Mortgage). Don't hesitate to reach out to him or Nicole Azzarello at 315-560-6106.
Thank you for reading my blog. I'm here to help you with your real estate needs in Sarasota, Venice, or North Port, Florida.
Linda Holley, Realtor, GRI, SRES, CIPS, Fine Properties, Florida 941-914-4914 www.LindaHRealtor.com
Sarasota Real Estate Agent
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