Question:
“Why should I care what a buyer puts down. I still get the same amount at closing, right?”
Answer:
Great question!
Indeed, the buyer’s down payment doesn’t impact the amount of your check at closing. (Unless you act as bank and “carry” a first or second loan against the house, but that’s another story.)
So while it doesn’t affect the amount of your check, it may affect IF you get the check.
Here’s what I mean…
All other things being equal, the bigger the down payment, the more likely someone tends to get approved for their mortgage.
So a buyer with 30% down is much stronger and more likely to be approved than one with 5% down.
