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Eirik Gislason

Lic. Assoc. R.E. Broker
Office:(917) 558-3992

Expertise. Knowledge. Honesty. Advocacy.

What's Up With Down Payment?

I am often asked by buyers, "Why does the seller care about my down payment amount? As long as I am satisfying the building's down payment requirement, and the bank has approved the loan, aren't they getting their money at the closing table whether I 'put down' 20%, 50% or 100%?"

It is a very reasonable question. Unfortunately, the answer is more complicated than you might think. 100% of the purchase price will certainly be delivered at the closing whether the bank is providing 8% or 80% of the funds. However, the seller being "made whole" is only one small piece of the puzzle and doesn't take into account two major factors in any purchase - risk and competition.

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Posted to real estate on Friday, October 21, 2016 at 10:36:00 AM