Most buyers do not have enough
cash available to buy a home, so they need to obtain a mortgage
to finance the purchase. Since you will probably make your
purchase contingent upon obtaining a mortgage, the seller has
the right to be informed of your financing plans in order to
evaluate them. That is one of the major reasons that financing
details are included in your offer.
Another reason
for including financing information in your offer is to protect
yourself. If interest rates suddenly become volatile and rise
quickly, as sometimes happens, you may looking at a mortgage
payment much higher than you anticipated. By putting a maximum
acceptable interest rate in the offer, you are protecting
yourself from such an occurrence.
At the same time,
the seller will probably want to see that you have some
flexibility in the financing terms you are willing to accept. If
interest rates are currently at eight percent and you indicate
this is the highest rate you will accept, you would be able to
cancel the contract without penalty if interest rates rose past
that point. The seller would suffer because they have lost
valuable marketing time and may have made their own plans based
on successfully closing the transaction.
Here at Signature Group we are
committed to working with Utah's Finest Lenders to help make
your lending process fast, smooth and and as stress-free as
possible. For more information, please visit my contact page
