Writing the Offer

The purchase offer is a document that attempts to benefit both the buyer and the seller during the negotiating stages of the purchase. The standard contingency in the offer is whether the buyer gets approved for a mortgage. Because of this contingency, the seller will require details of your financing plan included in the offer.
 
Some details to consider in the purchase offer include:
 
1. Amount of down payment
Included in the purchase offer will be the amount of down payment the buyer will apply towards the purchase. Including this information will provide the seller evidence of your seriousness and qualifications to secure financing.
 
2. Safeguard against interest rate changes
For the benefit of the buyer, there will be a safeguard in the purchase offer against any dramatic changes in interest rates between the period when the offer is made and when the loan is closed. This will protect the buyer from unforeseen economic events that may affect the affordability of the home.
 
3. Assistance from the Seller
If your dream home is near the top end of your budget range, it might be a good idea to seek assistance from the seller to pay a portion of your closing costs, or carry back a second mortgage to cover your down payment. You would be surprised how often sellers are willing to help!