Interest Rates
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.
Next Closing Costs and Financing Incentives
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Benefits of Owning Your Own Home |
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Important Things To Avoid Before Buying a Home |
Don't Buy a Car - or Did You Already Buy One? |
The Business Cycle and Buying a Home |
Comparable Sales and Your Offer Price |
Major Factors Influencing your Offer Price |
Offering to Purchase Real Estate- the Basics |
Writing an Offer - Safeguards Regarding the Property |
How Financing Details Affect Your Offer |
How FHA and VA Financing Affects Your Offer |
Selecting Service Providers |