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Writing an Offer
Below are some important things to consider when a buyer is writing an offer and securing a loan to purchase property.It is important to know which type of loan your buyer is choosing and the loan amortization so you can fill in your third-party financing addendum correctly.
The first page of your contract and the third-party financing addendum require these amounts to be completed.
The lender the buyer chooses, the loan program selected, and other factors can all impact the closing date you select. Some types of loans take longer to process than others. Also, the buyer may be out of town for a significant period of time, securing a gift, liquidating assets, or a myriad of other things that could all impact how quickly the loan can be approved.
In some cases the buyer may need the seller to pay closing costs in order to have adequate funds for closing. It is important to know the dollar amount required so you can properly complete section 12A.1.b of the real estate contract. Also, there are limitations on the amount of closing costs a seller can pay based on the type of loan the buyer is choosing.
Each lender can charge different fees for doing a loan. It’s important to make sure that the figure you use on the third-party financing addendum is at least higher than the amount the buyer is paying (section A.1 of the third-party financing addendum).
Pre-approval or pre-qualification letters can have different information depending on which lender is issuing them. In reviewing these letters it is important to make sure the lender has reviewed the credit, income, and assets of the buyer. Also, it is important to make sure all letters are current. Since a buyer’s financial situation can change quickly, an old pre-qualification or pre-approval letter is of no use.