Writing an Offer

Financial Considerations When Writing An Offer

When writing an offer it is common practice to make a purchase offer contingent upon obtaining a mortgage. Because of this contingency, the seller may want the details of your financial plan included with the offer to purchase.

Down Payment
When we submit the purchase offer to the sellers, we will include the down payment amount that you will apply toward the purchase. The down payment gives the seller further evidence of your qualifications to secure a mortgage loan.

Interest Rate
Within the purchase offer, we will provide a safeguard against any change in interest rates between when the offer is made and when the loan is closed. The offer will be contingent upon not only qualifying for a mortgage, but will be contingent upon an interest rate within a certain range.

Seller Assistance
If the house you choose is at the high-end of your budget range, we may want to include a request for seller assistance to pay a portion of the closing costs or to help “buy down” your interest rate. Other sellers assistance may include the seller to “carry back” a second mortgage to cover your down payment or even 100% financing.

With any of these seller assistance options, you can expect to pay a higher price for the house than if you had handled the financing through a traditional mortgage lender.