If you currently own a home and are getting ready to buy a new one, your offer may be contingent on the sale of your home. The home sale contingency allows you to get out of the purchase if your home doesn’t sell. It’s very risky for a seller to accept an offer with a home sale contingency, but there are many times when the contingency is necessary.
Why Are Home Sale Contingencies Risky for Sellers?
Contingencies allow buyers to get out of the purchase given certain situations. In the case of a home sale contingency, if your home doesn’t sell then you can be released from the contract. The seller will then have to find a new buyer, a process that can take weeks, or longer. If your home isn’t on the market yet, they won’t know if it will sell at all, or for a price that will allow you to buy their home, so there’s little reason to take their home off the market.
Continue reading “What Do Buyers Need to Know about Home Sale Contingencies?”
Before buying a home, you’ll need to secure your financing by talking with a lender. When you talk with the lender, you’ll go through either a pre-qualification or a pre-approval process. The terms are used interchangeably. For our purposes, we’ll look at them as pre-qualification being the less thorough of the two options.
Loan Pre-Qualification provides a ballpark estimate of your target price range, purchase costs, and monthly payments based on unverified information provided to the lender. Essentially, the lender will provide the Pre-Qualification based on what you tell them but they won’t check your credit rating. If you’re considering buying a home in the next 6-12 months, Pre-Qualification may be all that you need to get started.
Continue reading “What’s the Difference between Mortgage Pre-Qualification and Pre-Approval?”