As someone looking to buy property, sometimes it’s tough to get financing for your real estate purchase. In situations like this, seller financing is always going to be a wonderful option.
More than anything else, seller financing has big advantages for buyers that you might not have ever even considered. These advantages make it possible for buyers to purchase properties in circumstances that wouldn’t normally be possible for them.
To help you better understand the full advantages of seller financing from a buyer’s perspective, below we’re going to share some of the reasons why this is such a popular and exciting way to purchase a property. So if you’d like to learn more about it, please stick around a little longer to discover the advantages for yourself.
The Closing Can Happen a Lot Faster with Seller Financing
The first advantage we’d like to bring to your attention is the ability to close much quicker on a property with seller financing. When you have to secure a mortgage first before you can buy a property, you are going to have to wait on many different potential pitfalls that can slow the buying process down.
As an example, the bank loan officer may take more time than you originally expected to secure your loan when buying real estate. The seller may only give you a certain amount of time to secure a mortgage via the contract, and if you surpass this date you may end up losing a property that you’d love to purchase.
The same thing holds true for legal departments at the mortgage company and underwriters too. They can approve or disapprove your application and slow down the buying process tremendously, which can create problems for you and the seller.
So, if the opportunity presents itself, take advantage of seller financing because your closing will happen much faster if you no longer need to cut through all the red tape.
Closing Costs Are Much Cheaper with Seller Financing
Next, you’re going to love seller financing because your closing costs are going to be a lot cheaper. How so?
For starters, by eliminating a mortgage lender altogether, you aren’t going to have to pay any bank fees, which as we all know can get very expensive. Plus, since you’re buying the property and obtaining financing directly from the seller, you will not need to pay for appraisal costs either.
Flexible Down Payments Are Possible with Seller Financing
Sellers financing the sale of the property can be very flexible when accepting down payments from their buyers. A mortgage company might require the buyer to pay 20% of the purchase price upfront; a seller financing the property may only require 5% or less.
Seller Financing Makes Buying Properties Possible When You Do Not Qualify for a Mortgage
Finally, seller financing is wonderful for buyers because it means they are guaranteed to get the loan as long as the seller is willing to give it to them. If you do not qualify for a mortgage, this is the perfect way to acquire financing when all other avenues are closed to you.
If this content interests you and you are in the South Florida area, check out one of our events to learn more about how we can help you with real estate investing.