Have you found a great home to spend the next chapter of your life, but you need a loan to help you finance the move in?
Most future homeowners are advised to go to a bank and speak to a representative about finding a financing option. Unfortunately, it’s rare that anyone tells you that there are other options in terms of home financing.
Sure you could pay for the house in full, but most people don’t have the liquid capital to commit to such an investment.
Owner financing is a nice option since you can figure out a loan that helps both the buyer and the seller, and it’s easy to get into the home quickly.
Let’s learn about the benefits of not working with a bank when looking for a loan for your new home.
Get Into Your Home Quicker
Speaking to a bank for a mortgage takes a long time. Banks want to check your credit, background, salary and other items that help them figure out if they want to give you money for a home. Unfortunately, banks are often nervous to give away loans, so all of this time is often wasted if they come back and say they don’t want to give you a loan.
The Seller Gets To Ask For Financing Stipulation
If you opt to ask the seller for owner financing instead of going with a bank you can help the seller out as well. Talk with the seller and encourage them to make their own financing stipulations. This makes a seller more confident since the transaction gains transparency and there isn’t a middle man that is handling the entire transaction. The seller eventually gets their money and they can even earn a little interest instead of all the money going to a bank.
You Get To Talk To The Person That Gives You A Loan
When you go into a bank they make you fill out a mortgage application and then the application goes off to someone who you will probably never speak with. There’s limited transparency when applying for a bank loan. Some banks may give you a hint that your credit score is too low or you don’t have the salary to meet their requirements, but it helps to speak with the person who is giving the loan and actually meet an individual instead of working through a large bank with hundreds of people handling your information.
The Financing is More Flexible and Cheaper
Banks almost never bend the rules they already have put forth. If your credit score is slightly lower than expected they won’t give you a loan for your home. They will give you an interest rate and tell you how frequently you need to make your payments. You don’t have any say in how the financing works unless you opt to go with owner financing or a different loan option.
Now it’s your turn. Let us know in the comments if we missed any of the benefits of skipping the bank when looking for home financing options. Have you ever bought a home by using owner financing? How did it go? Do you have any reasons why a bank is better for buying a home?