ATTENTION TO MONEY MATTERS
There is nothing more serious than your money. It’s only natural that when you start to think about owning a home you should also get very serious about paying for it. For most, the shopping is the fun part and because money is the dreaded part it gets shoved aside.
We will help you to delve into the endless possibilities to choose from and the many decisions to make – where will I get it, how much do I need and when do I need it, what will it cost me, and who can I trust to advise me.
The full weight of the money is obvious when you see that the entire first page of a lengthy purchase contract is devoted exclusively to money. It should go without saying that an offer to pay means very little without the proof that you can pay, but this pesky little detail is one that often gets pushed aside for too long.
TALK WITH A LENDER OR TWO
The first thing to grasp is that one lender may tell you something entirely different than another lender. That’s because lenders have different loans and different eligibility guidelines. Interest rates, income to debt ratios, fees, programs for different income levels, length of loans, down payment requirements differ among lenders. Go to our ‘What Buyers Need to Know’ page to learn more about loans.
VERBIAGE FOR THE LOAN APPROVAL LETTER AS STATED IN THE PURCHASE CONTRACT
LOAN APPROVAL LETTER
The Purchase Contract has specific language for the Loan Approval Letter that is to be submitted with the offer. The letter is to state that the Buyer’s down payment and closing costs have been verified and that based on a review of buyer’s written application and credit report, buyer is preapproved for any NEW loan as specified in the contract as follows:
- Amount of purchase price, down payment, first loan and any additional loans
- Type of loan: conventional, fixed, other
- Interest rate, term of loan, or points
ALL CASH OFFER
Buyer shall deliver to Seller written verification of sufficient funds to close this transaction.
Under our resource section we have listed some of our favorite lenders – each with different products and services. Talk with us first and we can direct you to the person who is most likely to have a program that suits you. Ultimately it is the lender who will tell you what they offer and if you qualify, but your agent can alert you to a variety of options.