How Financing Offers Can Affect Your House Purchase
We all yearn to own our a home that we can call our very own. However, most of us do not have enough available money to buy a house and this means that we have to opt for a mortgage to help us finance our purchase.
Whenever you plan to go for a mortgage, remember to inform the seller of your financing plans so that he can evaluate them.
With regard to down payment, you would need to inform the seller the amount of the down payment. This gives the seller an idea as to whether your mortgage would be approved. The larger the down payment, the easier it is to get approval for a mortgage.
Another reason to have financing information in your offer is to protect yourself. If interest rates start fluctuating and rise suddenly, you would be left with a mortgage which would require you to pay higher monthly payments than you actually expected. If you include a maximum interest rate in the offer, you would be able to cancel the contract without incurring penalty in case the interest rate rises beyond what is mentioned in the offer.
Do not forget to ask the seller about closing costs and financing incentives. If you are lucky, you can get the sell to pay all of your closing costs. Many times sellers are requested to give money to reduce the interest rate for the first couple of years. This can work to your advantage if you have a money crunch.
Remember a seller may not be willing to negotiate too much on incentives because he would perceive it as if you are asking for money from him to help you buy his house. So, whatever is offered should always be considered as bonus and if he does agree to the incentives, you would end up paying more in the long run so tread wisely.
More Articles :
|
