There’s both pros and cons to selling your own home and although I believe you should always hire a professional Realtor to sell your home there have been times in the past where I have helped clients finance a purchase of a For Sale by Owner (FSBO).
Financing a FSBO while not impossible does pose some additional hurdles for buyers requiring a mortgage.
Private sales transactions take longer to process with lenders as there are more details and possibly more documentation to review compared to a standard mortgage application.
For many lenders private sales are also on an exception basis and a full appraisal will be required for both conventional and insured lending regardless of loan to value.
Lenders also typically require full documentation from the borrower upfront before offering a mortgage commitment:
• The Offer to Purchase (signed and witnessed)
• All Addendums and waivers as part of the Purchase & Sale agreement
• Income Verification
• Down Payment Verification
• Current Title Search
• Full appraisal
• Title insurance
For more information on financing a FSBO or if you are currently trying to sell your own home and would like a referral to a professional Realtor in your area please contact Scott Dawson