Florida Keys Homes: A Seller’s Guide to Buyer’s Financing

So, you’ve received an offer on your property, but what if it’s contingent upon financing? What does that mean for you as a seller? In this blog post, we’ll explore the different aspects of a financing offer.

Preapproval vs. Prequalification

When a buyer makes an offer, they typically submit either a preapproval or a prequalification. One is better than the other:

Prequalification is like the first step for homebuyers. It’s a quick process where you provide basic financial information to a lender. It gives you a rough idea of what you might afford, but it’s not a guarantee because it’s based on unverified information.

Pre-Approval, on the other hand, is more serious. The lender checks your credit, income, and documents. It’s a strong sign that you can get a mortgage. Sellers prefer it because it shows commitment and the ability to secure financing. In places like the Florida Keys, it’s a smart move for a smoother home-buying process.

Florida Keys Home Lender

On the prequalification or preapproval, there will also be the lender’s contact information. An experienced real estate agent has connections with local lenders. They know who can get the job done and who might encounter difficulties. Your agent can provide valuable insights based on their past dealings with a particular lender, helping you feel confident in your choice.

Calling the Lender

Did you know that the contract allows the seller’s agent to call the buyer’s lender? The lender can’t share personal buyer information, but they can confirm that the buyer is working with them and progressing with the necessary paperwork, which is a positive sign.

30-45 Days

A financing offer typically includes a loan approval deadline within 30 or 45 days from the effective date. This is a period during which sellers can be reassured that the deal will likely be finalized. It might feel like a long wait, but lenders need this time to complete their tasks.

Florida Keys Home Appraisals

Within the 30-45 day timeframe, an appraisal must also take place. The property’s appraisal needs to meet or exceed the agreed-upon price for the bank to lend the money. As a seller, you won’t know the appraised value because it’s something the buyer pays for. If the appraisal falls short, there are options to consider, such as requesting another appraisal or adjusting the price.

Insurances

Buyers needing financing must also secure insurance. Sometimes, insurance costs and mortgage payments can strain the buyer’s budget, potentially causing them to cancel. Usually, the buyer’s agent will explore insurance options during the inspection period.

Financing Contingency

Around half of Florida Keys homes sold involve financing and close without issues. While waiting for approval can be challenging, it’s a crucial part of the process. Your agent will guide you and offer advice throughout, making the journey smoother.

Ready to sell your Florida Keys Home?  Give us a call.

Also check out our Sellers Page for more important information on selecting a Marathon, Florida Realtor

Amy Prumo

Amy’s success as a Florida Keys Elite Agent and Diamond Award Winner is truly awe-inspiring. With over 13 years of experience in the real estate industry, she has cemented her position as a trailblazer and pioneer. Her unwavering commitment to excellence is reflected in her impressive academic credentials, which include a Master’s Degree in Marketing and Management. Amy’s marketing programs are simply unmatched, ensuring that your property is showcased to the widest audience of potential buyers, thus guaranteeing maximum exposure.