Sellers can nearly always beat the banks at their own game but you must do more than ask

Mortgage lenders operate by bureaucratic rules. Sellers can listen to any deal that provides worthwhile benefits. For you to obtain their best terms and lowest costs, lenders require piles of qualifications, paperwork, documents, and verifications, whereas sellers can agree to as few documents and qualifying standards as reasonable in a specific situation. Lenders pay huge costs for fancy buildings, office overhead, loan rep commissions, and executive perks. Sellers incur none of these expenses. Lenders charge thousands in fees, closing costs, and mortgage insurance. Sellers charge only interest and maybe a few other costs.

Lenders pay their depositors much less than they charge for mortgage interest.3 Sellers can match or beat the lender's mortgage rate and still earn a higher net return than placing their funds in bank CDs or savings accounts.

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