How do home loans factor into FSBO home purchases?

Home loans are a big part of FSBO home purchases. In fact, some studies have shown that as many as 90% of all FSBO sales include a home loan. This is because most buyers (especially first-time buyers) don’t have the cash to buy a home outright and need to take out a loan.

What is an FSBO Home Purchase?

FSBO is a term used for buying a house without using a real estate agent. It is an acronym for “For Sale By Owner”.

Benefits of an FSBO Home Purchase

There are a few key benefits to buying a home without a real estate agent:

• You’ll save money. Real estate agents typically charge around 6% of the sale price of a home. This can add up to a lot of money, especially on a more expensive home. When you’re buying an FSBO home, you won’t have to pay this commission.
• You’ll have more control over the process. When you buy a home with a real estate agent, they’re in charge of most of the process. They find the homes, show them to you, negotiate with the sellers and handle all the paperwork. When you’re buying an FSBO home, you’ll be in charge of all of this. This can be good or bad, depending on your level of experience and knowledge.
• You’ll save time. One of the biggest benefits of using a real estate agent is that they can help speed up the process. They already have relationships with lenders and title companies, so they can get everything moving quickly. When you’re buying an FSBO home, you’ll have to do all this work yourself – which can take longer.

What is Lender’s Role in an FSBO Home Purchase? 

When you’re buying an FSBO home, you’ll need to work with a lender to get a loan. The lender is going to want to make sure that the house is worth the amount of money they’re lending you. This is where the appraisal comes in. The appraiser will come to your house, take a look at it and give it a value. The value of the loan will be based on this number.

So, if you’re trying to buy a $200,000 house but the appraisal comes back at $170,000, you may only be able to get a loan for $170,000. Keep this in mind when you’re buying your FSBO home – make sure that it’s worth as much money as you’re borrowing!

The Importance of Choosing the Right Lender for Home Loans

When you’re buying a home, it’s important to choose the right lender for your loan. Not all lenders are created equal, and some are much better for home loans than others. Here are a few things to look for when choosing a lender:

1. Good customer service. This is key – you’ll want to be able to get in touch with your lender if you have any questions or problems.
2. A wide variety of loan products. Your lender should offer a variety of loan products, including fixed-rate and adjustable-rate mortgages, as well as FHA loans, jumbo loans, and VA loans.
3. Quick processing times. You don’t want to be waiting weeks or months for your loan to go through – you need to be able to close on your house quickly.
4. Competitive interest rates. You should compare the interest rates offered by different lenders to make sure you’re getting the best deal possible.
5. Friendly, knowledgeable staff. The staff at your lender’s office should be friendly and helpful – they should be able to answer all of your questions and help you through the process.

Choosing the right lender is an important part of buying a home – make sure you do your research and find one that fits your needs!

Six Pillar Lending Offers Mortgages for FSBO Home Purchases 

Have more questions about FSBO home purchases? Six Pillar Lending is here to help. Our mortgage-savvy team of experts can help you get your dream home with the best financing possible. Get in touch with us today to get started.