I accepted their offer, and am scheduled to close November 2, but the buyers are from another state, and looking to move here. They don't have a job, but she's a nurse, so I don't doubt that she'll get a job quickly.
After 5 months of no shows, I'm really excited about this offer, but uneasy about the no job thing. The no job means no mortgage loan. If she doesn't have a job by November 2, can I lease them the property? And will their offer to buy still be valid? I guess all that is negotiable, but what do you think?
2007-10-15 04:53:17 · 6 answers · asked by ron-D 7 in Business & Finance ➔ Renting & Real Estate
guys, sorry to leave this detail out, but my realtor is their realtor. since they visited from another state, they used her, cause I told them to - they saw my house as "walk-in" I guess. I told them I'd knock off ~$4K from the price if they used her - they'd save off me not paying more realtor commissions.
2007-10-15 05:07:54 · update #1
Are you working with a lawyer or a Realtor? They should be explaining the sales contract to you - particularly the part about the financing contengency.
There should be a date by which you, as seller, must have in hand a commitment letter from the lender - or the deal can be cancelled by the buyer, and the buyer will get her deposit back.
Look at your sales contract and hopefully there is some language in there to protect you, but if the nurse can not get a mortgage, she can not buy your house - and there should be a time limit on that, for your peace of mind.
Good luck and best wishes.
2007-10-15 05:01:05 · answer #1 · answered by venicefloridarealtor 4 · 2⤊ 0⤋
While "not counting you chickens till they are hatched" is a good concept, just because someone is moving doesn't necessarily mean they will not be able to get a mortgage.
Your buyer might just be transferring from one town to another within the same medical clinic or hospital system. Or they may have arranged for a mortgage before quitting their current job. Or they could have enough cash out of their previous home that they don't have to worry about a mortgage (not very likely, but it does happen).
Check with your Realtor. An approval letter from a mortgage company should have been submitted along with the buyer's offer. Sometimes these letters are not worth the paper they are written on, so your realtor should already have called the mortgage company and verified the 5 major points that i've listed below regarding the financing. Ask your realtor.
At the very minimun, the realtor should check:
1) What is the middle FICO score of the buyer? Most mortgage companies want to see a middle score (from the 3 credit bureaus) to be at least 645. Others want it to be 670 or higher.
2) Has the buyer been in the same trade line for 2 or more years? A trade line is a career field, but not necessarily an employer. In other words, has the buyer been a nurse for at least 2 years?
3) Debt to Income Ratio - does the buyer have debt that is more than 47% (approx - varies between mortgage companies) of total gross income? Does the buyer's ratio conform to the mortgage company standards?
4) Did the mortgage company actually pull the buyer's credit report?
5) Has the mortgage gone through underwriting? Once the underwriters have approved everything, then you should be golden.
Hope that helps...
Hatlady
In the interest of complete disclosure - I am a REATLOR®, licensed in Minnesota.
2007-10-15 12:24:20 · answer #2 · answered by Hatlady 3 · 0⤊ 0⤋
Realtor commissions don't usually work that way. You usually sign a contract for a set percentage. It doesn't generally decrease if the buyer uses your agent. The agent just gets to keep more of that money. The agent is also a dual agent at that point and has responsibility to you and to the buyer. It is a fine line to walk for the realtor.
It will be interesting to see how the financing goes. Banks generally like an employment history, etc.
good luck!
2007-10-15 13:24:01 · answer #3 · answered by Rush is a band 7 · 0⤊ 0⤋
We consulted with our finance company well before we even found a home. They unofficially 'preapproved' us for a loan for the certain amount we were trying to stick to and off we went looking for our little abode.
Why don't you ask your realtor to call their realtor and find out if they have had any such thing done to ensure they can close with no problems? I wouldn't care if it might be perceived as bad manners... it's fair game when dealing with such a big personal business matter.
2007-10-15 12:04:06 · answer #4 · answered by ? 6 · 0⤊ 0⤋
I think you just signed up to stress yourself out for the next month hoping things work out for you. I would have put a clause in there allowing you to accept an offer in the meantime should one come your way. You will have wasted a lot of your own time if things don't work out for you after Nov. 2. http://www.choicerealestate.net/
2007-10-15 12:38:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
i would start getting the papers ready to lease them the home for 1month.....with option to buy.
VERY HARD getting a loan with no job...especially from another state. If she gets an offer letter from a employer then she will be set....
2007-10-15 11:56:26 · answer #6 · answered by Anonymous · 1⤊ 0⤋