Texas Cash Back Real Estate
Jill Aylwin - Real Estate Broker, Realtor, MBA
Ph: (281) 334-CASH
Writing an Offer
It is standard practice in the real estate industry to make a purchase offer contingent upon the buyer obtaining a mortgage. Because of this contingency, the seller will want the details of your financing plan included in the offer in the form of a Financing Condition Addendum.
This form will spell out such financial details as:
- The maximum interest rate on the loan
- The maximum you will pay in loan fees
By capping these amounts, you (the buyer) is protected against any severe interest rate increases or excessive loan fees.
Also in the offer, the Down Payment will be determined, along with the amount of the loan to finally equal a total purchase price. The down payment information will give the Seller even more confidence in your ability to secure a mortgage.
Sometimes, buyers want a home this is at the top-end of their budget range and they may not have enough cash on hand for the down payment, closing cost, etc, or may have cash-flow issues in the future.
In this case, we may want to include a request for seller assistance to pay a portion of the closing costs traditionally paid by the buyer or ask the Seller to help "buy-down" the buyer's interest rate, in order to make the future mortgage payments lower and more manageable.
When using the seller assistance options, you should expect to pay a higher purchase price than if you had handled the financing through a traditional mortgage lender.
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