Tips on buying a house

[Morrigoon]

It's a checkbox on the standard CAR purchase contract. Just make sure your realtor marks off that box.

Basically, it means that if you don't get your loan, you don't have to buy the house anyway. See, if you had a normal loan contingency, then after you've shown that you're approved for a loan that meets the terms you set forth on your offer contract, you would have to remove the loan contingency. Let's say you do that, and all looks good, then suddenly in the last week or so of your escrow, something happens where the bank now doesn't want to give you the loan, or changes the loan terms drastically (don't think it doesn't happen, it does!)... you end up in a bit of a pinch because now you're obligated to go through with the purchase, and you have to either make something work out with your current lender, or find another lender.

Oh, that's good advice too... get approved by another lender... that way, if anything does change last minute, you have a lot more options, as you're further along in the loan process than you would be if you had to scramble at the last minute to get a new lender. Also keeps lenders on their toes in giving you the best deal they can. Make sure lender #2 knows you already have one pre-approval and that they're having to find a loan that makes them competitive with that. I can give you a few names, if you want.

[Betty]

Originally Posted by Morrigoon

It's a checkbox on the standard CAR purchase contract. Just make sure your realtor marks off that box.

Basically, it means that if you don't get your loan, you don't have to buy the house anyway. See, if you had a normal loan contingency, then after you've shown that you're approved for a loan that meets the terms you set forth on your offer contract, you would have to remove the loan contingency. Let's say you do that, and all looks good, then suddenly in the last week or so of your escrow, something happens where the bank now doesn't want to give you the loan, or changes the loan terms drastically (don't think it doesn't happen, it does!)... you end up in a bit of a pinch because now you're obligated to go through with the purchase, and you have to either make something work out with your current lender, or find another lender.

Oh, that's good advice too... get approved by another lender... that way, if anything does change last minute, you have a lot more options, as you're further along in the loan process than you would be if you had to scramble at the last minute to get a new lender. Also keeps lenders on their toes in giving you the best deal they can. Make sure lender #2 knows you already have one pre-approval and that they're having to find a loan that makes them competitive with that. I can give you a few names, if you want.

I'll take a few names - sure! They need to be FHA approved though. And thanks for explaining. This is all very confusing for someone with no experience buying houses.