Financing and Your Offer
Since most buyers do not have enough cash available to buy a home they need to finance their purchase. Take a look at the things can affect your offer. The Down PaymentYou will need to disclose the amount of your down payment. This allows the seller to evaluate the likely hood of you being able to obtaining financing. It is easier to obtain financing when you make a larger down payment as the underwriting guidelines are less strict.The Interest RateA good reason to include your financing information in your offer is to help protect yourself. If interest rates suddenly rise you may looking at a much higher mortgage payment than you expected. By putting a maximum interest rate in the offer, you are protecting yourself from such a situation. On the other side of things, the seller will want to see that you have flexibility in the financing terms that you are willing to accept so that there is a better chance you will make it to closing.The Closing Costs IncentivesAs part of your offer you can request that the seller pay all or a portion of your closing costs. A common request, especially with first time buyers, is asking the seller to provide funds to buy down your interest rate for the first year or two. Whenever you ask the seller for incentives such as these, you will probably find the seller less willing to negotiate on price because they are looking at what they will net on the sale.The Seller FinancingAnother possible request is to have the seller hold a second mortgage to help facilitate your purchase of their home. Seller financing is prevalent in cases where the seller does not need all the proceeds from their sale in order to purchase their next home. If seller financing is part of your offer, you should include the terms you wish to pay on said financing. Your first mortgage lender needs to know this information so they can underwrite your loan meeting certain minimum requirements. The Cash OffersIf you are making a cash offer to buy a home, it makes sense to need to provide documentation “proof of funds” with your offer that shows you have the necessary funds available.If you are looking at Plano Homes For Sale seek out a professional Realtor that has access to the powerful Plano MLS so that they can provide you with information on all available listed homes for sale. Many times seller financing is listed on the MLS printout making it easier to find these types of homes. If you are looking for a great deal in the DFW Metroplex look for Dallas Foreclosures as a great source for fining a great home at a great value.
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