In this episode, I chat with Frank Gemma with Caliber Home Loans. He explains why sellers may want to consider offering a credit vs. a price reduction when selling their home.

With interest rates in the 7-7.5% range, many home are staying on the market longer and some buyers are seeing a decrease in their buying power due to higher interest rates. A seller credit will have a bigger impact in reducing a buyer's mortgage than a price reduction of the same amount.

Sellers will pay a little more (and net a little less) when offering a credit. I would recommend a seller to compare an estimated net sheet that compares a price reduction vs. seller concession. In a similar fashion, I would recommend buyers do a side-by-side comparison of loan estimate with and without a seller concession.

Frank also shares why it is important to work with professionals when purchasing a home.

If you would like to schedule a consultation with Frank, click here to access his calendar or email him at Frank.Gemma@caliberhomeloans.com

You can also access the Mortgage Bankers Association's website here.