Deal With Sellers

Your objective as a smart buyer should always be to buy real estate with little or nothing down. Even if a seller has equity, you can work out an arrangement that is to your benefit. For example, a seller may agree to carry all the paper on the transaction. This doesn’t mean that the seller will receive no down payment where there is an equity consideration. What it does mean is that you shouldn’t have to come up with cold cash out of your pocket.
Extending credit to customers is the way creditors make money. If you convince them you are a good risk they will give you what you want. Basically, there are two ways you can achieve that goal.
1) You can bypass the normal scoring methods that are used by impressing the person processing your application that you are sincerek reliable, stable, and have the ability to make monthly payments on a loan or credit card account. 2) You can tailor your answers to the application’s questions and in that manner fit into the right scoring mold of what a good credit risk is, according to the formula they are using.
That doesn’t mean you should lie on your application. It simply means you should be aware that being compatible with certian sterotypes will work in your favor. Remember, a creditor can still verify the information you list in an application. Still, many people will twist the truth to put themselves in a favorable position. For example:
1) Some applicants will list their parent’s, a friend’s, or a relative’s address as their own residence and indicate they have lived there for years, knowing it probably won’t be checked. 2) Provided an applicant has a friend or employer who will go along with them, they can list a position and salary they don’t really receive. Then when the creditor calls to verify employment the friend will support what the applicant has claimed to be true. 3) Another way applicants instantly increase their salary is to set up their own corporation. After issuing themselves private stock with an inflated value, they list the stock as part of their salary.

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