How Financing Details Affect Your Offer
When making an offer to purchase real estate, financing contingencies should be carefully considered.
Your financing contingency should contain information on whether you are obtaining a fixed rate or an adjustable rate mortgage and what maximum rate is acceptable. Of course you may be able to get a loan at 8% but when the prevailing rate is 5% to %5.5.%, an 8% rate wold be unacceptable.
Also, pay careful attention to the financing contingency deadline. If you agree to get a firm commitment from the lender in 45 days and it’s coming up on day 43, you’d better ask your Realtor to get an extension on the loan commitment to avoid any contractual issues.