Homebuyers in Scramble to Firm Up Mortgage Financing

by Isaac Benmergui, Esq on June 14, 2013

Safe1South Florida homebuyers can’t take their time in looking for mortgage financing. In as seller’s market where mortgage rates are creeping up and available inventory of homes for sale is low, buyers are scrambling to shore up financing.

If buyers wait to have the financing in place and find the home they love, they could lose the deal without a previous loan commitment from a bank or financing company. One realtor warns buyers that they need to deliver their financing in under two weeks or risk the property going to the next bidder, and in a tight market, there will be more than one bid on a good property.

The majority of real estate agents won’t tour a property with an interested home buyer unless they have already met with their lender anyway. And many times, buyers although certain they will get the lowest rate on a mortgage, end up having to pay a higher percent on the loan due to credit problems and debt-to-income ratios.

Sellers are also looking for a quick closing, which is another thing that could hold buyers back if they aren’t pre-approved for a loan. When a buyer uses an FHA or VA loan, those can take 30-to-45 days or more to close and some sellers simply specify that they won’t accept FHA or VA mortgages.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

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