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In this section, I am going to discuss what questions to ask and what factors to consider when a new homebuyer has located a property and wants to begin the process of claiming ownership of the property.
Characteristics of the purchase contract
- If you need to obtain financing, it is important to make the purchase conditional on obtaining adequate financing. This ensures the return of the security deposit to the buyer, in the event that the buyer is unable to obtain financing within the specified time frame.
- You can include a built-in counter offer clause. If you anticipate that you may not be the only party to make an offer on the property, add a clause with wording similar to “In the event the seller receives multiple offers, the buyer agrees to pay X amount of dollars over the highest price.” high offered”. , up to a maximum price of Y.” You should discuss the pros and cons of this clause with your agent because there are downsides to including it. One disadvantage of including this clause in the home purchase contract is that the seller may perceive that you are overzealous in your desire to buy the house and that may lead to a higher counter offer sales price.
Obtaining Financing
I refer you to my articles that describe the various pros and cons of different loans like (ARMS, Fixed Rate, Option ARM, etc.). Here are some of the questions a borrower should ask when comparing loan options.
- Get your credit score as high as possible, your interest rate and chance of qualifying increase significantly with a higher credit score. If possible, pay off as much debt as possible, such as 200 balances on that department store card you signed up for the advertised discount on. Do this as early in the process as possible, it takes a while for these changes in your debt ratio to show up on your credit report.
- Get pre-approved by a lender or mortgage broker. This essentially makes you a cash buyer with a lender who agrees to approve you for a loan barring unexpected changes in your financial situation. It’s also a good way to find out how much you can afford before wasting time and energy looking for homes outside of your price range. A good pre-approval letter will contain the following information: loan amount, interest rate, contact information for the mortgage broker or loan officer, and the date the letter was issued (letters are generally considered reliable for up to 30 days).
- Find a mortgage lender or broker. A good loan officer will provide you with all the information you (the borrower) need to make an informed decision about which loan to choose. And it will also help you do everything in your power to solve any obstacles that may arise during transaction processing. In addition, many lenders offer information that helps buyers compare types of loans.
I hope this article has been useful to you. Kevin Fenderson works as a real estate agent for Santa Ana, Ca.-based Hilltop Realty. He writes regularly for newschoolrealestatemarketing.com [http://www.newschoolrealestatemarketing.com]. If you have any questions or comments, please visit their website.