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Financing
Details and How They Affect Your Offer
Interest Rates
You should always including financing
information in your offer to protect yourself. If interest rates suddenly
become volatile and rise quickly (which can happen), you may find yourself looking at a
higher mortgage payment than you originally anticipated. By setting a maximum
acceptable interest rate in with your offer, you can protect yourself from
this such
occurrence.
The seller will probably want to see that you
have some flexibility in the financing terms you are willing to accept. If
the current interest rate is at 7% percent and you indicate this is the
highest rate you will accept, you would have the ability to cancel the
contract (without penalty) if the interest rate exceeded that point. The
seller would suffer because as they would not only have lost valuable time
but perhaps already may have altered their own plans and schedules based on
the transaction closing successfully.
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