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you can do conventional with only 3% too. your down payment has no affect on the offer chosen, the seller doesn't even get to know.
by Beached 5y ago
you can do conventional with only 3% too. your down payment has no affect on the offer chosen, the seller doesn't even get to know.
- ganoushoreilly 5y agoSome markets have home buyers picked based on earnest and Diligence monies. Usually these are applied to closing / down payment. In those instances it’s clearer.
- locusofself 5y agoI sold a house last year in Washington and I saw the down payment amounts in the offers I received.
- gamechangr 5y agoThat's for sure not accurate. Sorry friend. The seller both sees your down payment and it also affects which offer is chosen. Let me give an example to explain why they see it and why it's important. let's say that the agreed contract says that the buyer and seller agree to pay $600,000 for the house. Let's pretend that you have 10% down or $60,000 down. You need a loan for $540,000 The loan requires an appraisal to make sure that the bank (the loan) is a safe investment. The bank/loan only agrees to lend you the amount the house appraises at. Back to the example and the appraiser comes out and says that the house is worth $500,000. In this case, again the signed offer says $600,000 with a $60,000 deposit. The buyer either has to bring $100,000 to the table or the seller has to agree to make less money than the original offer (or some combination of the two) , but the bank will only give $500,000. So if a buyer had a $100,000 downpayment and offered $600,000 and a second buyer offered $600,000 as well but only had $60,000, the seller would most likely choose the offer with more money down. it would be more likely to close. Hope that helps