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Let’s say I make an offer with a pre-approval that shows 20% down payment. After we make the purchase agreement, I find a private local lending product with 0% down payment. Are you as the seller going to back out of the sale?I'm going to try to answer all of these questions directly when possible.
Yes I agree a buyer could always switch up the financing after the offer is accepted. However, lets be honest those no money down payment programs are typically for first time home buyers etc. A first time buyer typically doesn't know of all their options. While I agree that strategy could work, its definitely going to be more work for the buyer to get all of that done in a timely manner. First time homebuyers, are typically the least likely to make such a move unless something falls through.
Let's be real if I told you I could get you a pre-approval requiring no money down, a fair rate, etc why would you even bother to look around until someone else tells you thats the reason you're not beating out other offers.
I've backed out of 1 contract my entire life (and I paid let the seller keep the earnest). So no I wouldn't back out but I'd also be less likely to take the 0 money down payment offer over a person paying a similar price with cash, 20% down conventional financing etc.
You have to take into consideration that the market was on fire for the last 2 years. Very few places are getting no offers.