It is standard practice to make a purchase offer contingent upon obtaining a mortgage. Because of this contingency, the seller will want the details of your financing plan included in the offer. This is why it is so important to be pre-qualified for a loan before looking for a property. There may be multiple offers that we are competing against.
This will be the first page of your offer. The complete purchase contract is about 8 pages plus possible addendums and counter offers. We can furnish you with a sample copy.
The seller is required to furnish buyers with various disclosures. We can supply sample copies of these for you to preview anytime you would like also.
We'll help you to understand all of this paperwork. We read it everyday! Or, feel free to have your attorney preview anything before you sign.
Deposit CHECK-Please carry your checkbook. If you decide to make an offer, a good faith deposit is required. It can be any amount that you'd like to offer. Sellers often believe that the bigger the deposit, the more serious the buyer. 1%-3% of the offer price is the norm. If your offer is accepted by the seller, your check will be turned over to the Title/Escrow company and cashed. It can then be used towards your down payment or closing costs. If we include a financing contingency and you are unable to secure a loan per the contract terms, your deposit should be refunded to you.
Negotiating-The whole time that we are negotiating with the seller, the property remains on the market giving the seller the right to sell to another buyer at any time. Once we have an accepted offer, with acceptance conveyed to us, the property is then typically off the market accept for back-up offers. We now enter escrow.
Down Payment In the purchase offer, we will include the down payment amount you will apply toward the purchase. This will give the seller further evidence of your qualifications to secure a mortgage.
Interest Rate Within the purchase offer, we will provide a safeguard against any dramatic change in interest rates between when the offer is made and when the loan is closed. The offer will not only be contingent upon qualifying for a mortgage if you like, it will also be contingent upon an interest rate within a certain range.
Seller Assistance If the house you select is at the top-end of your budget range, we may want to include a request for seller assistance to pay a portion of the closing costs traditionally paid by the buyer or to help "buy-down" your interest rate. Other seller assistance may include having the seller "carry back" a second mortgage to cover your down payment or even 100% seller financing.
With any of these seller assistance options, you can expect to pay a higher purchase price than if you had handled the financing through a traditional mortgage lender.
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All measurements and calculations of area are approximate. Information provided by Seller/Other sources, not verified by Broker. All Interested Persons should independently verify accuracy of above information.
DRE#: 01012813
Leslie Arnott Realty 300 Harding Blvd. Suite 214B Roseville, CA 95678
