At Newlot Homes, we understand that selling your home can be a complex and challenging process. In this blog, we’ll be discussing some of the drawbacks of a lender-financed offer, so you can make an informed decision when it comes to selling your home.
Appraisal issues – When a buyer obtains financing for a home purchase, the lender requires an appraisal to ensure that the home is worth the amount they are lending. If the appraisal comes in lower than the purchase price, the buyer may not be able to obtain financing for the full amount, resulting in a renegotiation of the sale price or even the sale falling through.
Delays in closing – Lender-financed offers typically take longer to close than cash offers. The loan approval process can take several weeks, and there may be additional delays if the buyer has difficulty obtaining financing.
Condition requirements – Lenders may require that certain repairs or upgrades be made to the home before approving the loan. This can add additional costs and delays to the sale process.
Contingencies – Lender-financed offers often come with contingencies, such as a home inspection or appraisal contingency, which can give the buyer an opportunity to renegotiate the sale price or even back out of the sale.
Risk of loan denial – Even if a buyer is pre-approved for a loan, there is still a risk that the loan will be denied, resulting in the sale falling through. This can be especially frustrating for sellers who may have already made plans to move or purchase another home.
At Newlot Homes, we understand that every home sale is unique, and we work with our clients to provide personalized solutions that meet their needs. Whether you’re looking for a cash offer or a lender-financed offer, we’re here to help you navigate the home selling process. Contact us today to learn more about how we can help you sell your home.