Writing the Offer - Financial Considerations
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.
Down Payment - In the purchase offer, we will include the down payment amount you will apply toward the purchase. The Offer can be written so the down payment can be included with the initial offer or paid via personal check after the Seller has accepted the offer. The Earnest Money (down payment) will give the seller further evidence of your sincerity.
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, 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.