Add a comment | Wednesday, January 27, 2010
Hello again—So when you are with your Realtor while he/she is drafting your Purchase Contract. Here’s a few more basics for you to remember. —It may seem like a trivial thing to talk about, but not all agents fill out the purchase contract correctly.— It is important that it is filled out properly and correctly not only for your protection as the buyer, but for the Lender as well who will ultimately give it to the Underwriter.— The attorneys at C.A.R. and the forms people put protection things in the contract for you the buyer. —Make sure that your loan amount is in the contract.— I generally talk to the buyers loan officer (whoever that may be) prior to or during the contract writing process, to ask the important necessary protection questions for the buyer. (The Max interest rate that should be put in the contract, or if you are doing an FHA Loan how much must the seller pay, the buyer cannot and other questions too)— So ask your Realtor to show you where in the contract is the loan amount if you don’t see this in the contract, or if it is not brought up in discussion (haha—that is if you are getting a loan to do the purchase it needs to be in the contract—oh duh)—Next, there is a place to put in a MAXIMUM interest rate you are willing to pay (Typically that amount is given to the Realtor by the loan officer who knows the history of credit of the buyer and other details which will dictate the interest rate). It is a protection clause for you, the buyer because— If the interest rates rise and it goes above that percentage number in the contract, it is your right to back out and retain your deposit (ask your Realtor about this). — However if it is Not in the contract and you cancel the purchase (depending on certain terms) You may have just given the seller your deposit when you didn’t necessarily have to.— That’s what I mean by a buyers protection clause.— Next, the interest rate will be written in the contract(hopefully) under the FIXED loan part. — Probably a 30 year Fixed Rate. You probably DO NOT WANT TO DO AN ARM (ADJUSTABLE RATE LOAN) EVER.—the loan term (30 years) should be marked as well as the 30 year Amortized (equal monthly payments over 30 years) is what that means (unless you are doing a Fixed 15 or 20 year loan and then it is set up thata way IN the contract.—That’s it for today—when in doubt ask your Realtor—That’s what this Realtor does—I Help People.—Buy Buy for Now.
