How large of a mortgage loan you can qualify for depends on how much debt a lender thinks you can take on as a borrower. This will ultimately determine how much house you’re able to afford. However, just because you’re approved for a certain amount doesn’t mean you should buy a house with that home […]
A contingent offer on a house lets you back out of a purchase agreement if you learn something about the home that compels you to cancel the sale. Contingencies help ensure you’re not buying a home with major problems or paying more for a home than a mortgage lender is willing to finance. Let’s discuss […]
What Is The Home Inspection Contingency? A home inspection contingency mandates that the offer is contingent on the result of the home inspection. An inspection contingency allows the homeowner a specific number of days (typically 7 – 10), to respond with any objections to what’s found in the inspection. This ensures the buyer is able […]
What Are Comps In Real Estate? Simply put, real estate comparables – or “comps” – are comparable properties in a specific area that you’re looking to buy or sell in. Comps are used to determine the value of a home by comparing it to similar properties sold in the same neighborhood or in an area […]
What Is A Home Appraisal? A home appraisal is a professional opinion of how much your home is worth. Appraisals are important in the home buying process because they give you comfort in knowing that you aren’t overpaying for real estate. Appraisals also let lenders know they aren’t loaning you more money than your home […]
What Does A Low Appraisal Mean? A “house appraises low” if the value assessed by the home appraiser is lower than the purchase price agreed to between the buyer and seller. The home appraisal provides a snapshot of the appraiser’s opinion of the current market value based on similar closed sales in the area. When […]
What Does It Mean When A House Is Under Contract? A property that’s under contract is one that the seller has previously accepted an offer on from a buyer. However, until all contingencies on the home are met and ownership transfers to the new homeowner during the closing process, the deal can still fall through. […]
Having your offer accepted on a new home purchase is one of the most significant and emotional financial transactions of your life. Not only are you committing to the responsibility of paying a monthly mortgage, you’re also choosing the home and the community you might be living in for many years. It’s a big moment. […]
Can A Buyer Back Out Of An Accepted Offer? As a home buyer, you can back out of a home purchase agreement. However, with no contingencies written in the contract, you may face costly consequences such as losing your earnest money deposit. As a buyer, the ability to back out of an accepted house offer […]
Most real estate transactions come down to a buyer being able to acquire a mortgage. If a potential buyer signs a contract for a new home and then discovers they can’t secure financing, that’s when a mortgage contingency can come into play. A mortgage contingency – also known as a financing contingency or a loan […]