Home Buying Tip – How To Change Your Finance Strategy After Having An Offer Accepted
Finding a home and negotiating a price is only half the battle when it comes to home ownership. In fact, it’s probably the easiest part of the whole process, especially for those who are relying on a mortgage to fund their new purchase. Once you have negotiated a price and signed the contracts, you are legally bound to complete the process, or you could lose your down payment. Smart buyers have their finances all sorted before they make their first offer on a home and sellers prefer to deal with those who have their finances in order. That doesn’t mean you cannot change your financing strategy once you have signed that contract.
There are a lot of factors that go into deciding on which home loan a buyer is going to use. These factors can change considerably once they have negotiated that final sales price. If a buyer has agreed to a price that is slightly higher than originally planned, they may look for a home loan that allows a smaller down payment. Conversely, they may have agreed on a price that is considerably lower than originally planned, so they may look for a loan with better conditions given the larger down payment they have to offer.
Your sales contract is a legally binding document so any changes to your financing strategy needs to meet the requirements of that sales contract. In simple terms, if you do change your financing strategy, it should not have any adverse affect on the seller, and this includes situations where you are pushing the settlement date back while waiting for that final approval of a new loan contract. In some states, your financial arrangements are included in the sales contract so any variation needs to be approved by the seller. If the seller feels the new arrangements do adversely affect them, then they may have the right to reject those changes.
When looking at your financial strategies for buying a home, be very clear from day one what you can afford in terms of monthly payments, the down payments, and the fees associated with closing. Talk to your buyers real estate agent before making any major changes to your financial strategy to ensure it doesn’t impact on the sale. Your real estate agent may even be in a position to point you towards better mortgages. After all, they are in the real estate business so they know who is offering the best mortgage deals at any given time.
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