Reduce Your New Home Mortgage Rate with a Seller Buydown

Many live/work lofts require loft specialist lender for successful mortgage loan and escrow.

REAL ESTATE NEWS (Los Angeles, CA) — Home sales have dropped off substantially over the past few months due to higher interest rates. One of the best solutions is to have the seller provide an incentive in the form of a buy-down to help reduce the home loan interest rate and allow lower monthly payments.

Some real estate developers and new construction home sellers are offering up to $30,000 in inducements to help prospective home buyers get into a shiny, sparkling new residence.

Purchasing a new home is a big decision and one that requires a lot of thought and consideration. With interest rates on the rise, many potential buyers are finding it harder to afford the home of their dreams. However, there is a solution that can help reduce the cost of a home loan and make it more affordable for buyers. This solution is known as a seller buydown.

A seller buy-down is when the seller of a home provides an incentive to the buyer in the form of a lump sum payment. This payment is used to reduce the home loan interest rate and lower the monthly payments. This can be a great way for buyers to afford a home that they otherwise might not have been able to afford.

Real estate developers and new construction home sellers are starting to offer up to $30,000 in inducements to help prospective buyers get into their new homes. This is a great way for buyers to save money on their home loan and lower their monthly payments. It also helps sellers to move their inventory and sell more homes.

The process of a seller buydown is relatively simple. The seller provides a lump sum payment to the lender, which is used to reduce the interest rate on the home loan. The lender then passes on the savings to the buyer in the form of lower monthly payments. This can result in thousands of dollars in savings over the life of the loan.

For example, The monthly payment for a $600,000 home with 20% down at a 6% interest rate would be approximately $2,914. If the seller provides a $30,000 incentive, then the payment could be reduced to $2,913. That’s a $101 per month savings. In some scenarios, the payment could be even lower. It’s worth noting that this is just an estimate, and there are other factors that can affect your monthly mortgage payment such as property taxes, insurance, and private mortgage insurance (PMI) if your down payment is less than 20%.

It’s important to note that not all sellers will offer a buydown, so it’s important for buyers to ask about this option when shopping for a home. It’s also important for buyers to understand the terms and conditions of the buy-down, as there may be restrictions or limitations.

In conclusion, a seller buydown can be a great way for buyers to save money on their home loan and make it more affordable. It’s important for buyers to ask about this option when shopping for a home and to understand the terms and conditions of the buydown. With a seller buydown, buyers can take advantage of the opportunity to save thousands of dollars over the life of their home loan and make the dream of homeownership a reality. To get qualified to access $30,000 in seller buy down incentives for an easier home purchase, call the Corey Chambers Team 213-880-9910.

Industrial and commercial conversion live/work loft buyers often need to use a loft specialist lender in order for the mortgage funding and escrow to be successful. Request a free list of loft lenders. Fill out the online form:

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker CalDRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

Downtown Los Angeles Loft Real Estate Back-Up Offers

Loft Property Tactics and Strategies

One of the most overlooked opportunities in real estate for buyers and sellers are back-up offers.

Because listed properties under contract and pending sale properties lose visibility, they are too often overlooked because buyers can’t see them as easily.  Currently, more than 10% of these properties fall out of escrow (sometimes up to 25% fail), and most of those have no back-up offer at all. Wasted opportunities!  By placing offers and back-up offers on several properties, home buyers increase their chances of getting a great deal on an amazing loft or condo.  In California, buyers are generally safe to place several offers in a short period of time because most offers expire by default within three days, plus the buyer usually has contingencies, which are opportunities to cancel without risk of losing the buyer’s deposit. Buyers usually don’t want to go into escrow with two properties —  so, as soon as a buyer receives an accepted offer, they generally want to send cancellation notices for any other offers out that might still be valid.  #realestate #backup #offer

It can certainly be a big disappointment when a prospective buyer sees the ideal home go from active to pending.  Rather than giving up, the buyer may still place the highest and best offer on the property.  A very good back-up offer can actually increasing the chances of the first accepted offer falling out because it gives the seller leverage to place more pressure on the first accepted buyer by negotiating strictly, and by not making requested repairs for the first buyer. A back-up offer makes things happen, while failing to place an offer does not.

In Downtown Los Angeles, many amazing lofts have financing difficulties, especially if the buyer and seller are both using out-of-area agents who are not familiar with the loft lenders that are often necessary for a successful transaction. A back-up buyer with cash or a good loft lender can step right in, without missing a beat (sometimes with expensive inspections taken care of already).

While it’s usually best to place an offer on a pocket listing or active listing first, back-up offers should not be neglected. Often the accepted buyer simply gets cold feet, is unprepared or is otherwise unsuccessful.  The serious back-up buyer gets the awesome property!

Back-up Opportunities

Get a free list of pending and for sale under contract.  Fill out the online form:

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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.