Home Buying in 76016>Question Details

Sam Cooles, Other/Just Looking in Arlington, TX

Is the interest rate information in section C of Texas 3rd party financing addendum the buyer's desired interest rate or a rate provided by the?

Asked by Sam Cooles, Arlington, TX Thu Feb 10, 2011

lender

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Don Groff’s answer
Typically this is the highest rate you would accept for financing. In a contract there are many ways to proved a "get out' for buyers. This is one of them. When I represent a buyer I use all of these areas of the contract to protect my buyer's interest and earnest money. On the flip side when I represent the seller I do as much as possible to tie down the buyer so that they cannot walk away without losing their earnest money. This is one of the main reasons it's important to use an experienced Realtor who knows about the ins and outs of the contract and can use that knowledge to protect you.

Good luck to you.


Don Groff
REALTOR | Mortgage Broker
Keller Williams Realty | 360 Lending Group
512.669.5599
listings@dongroff.com
0 votes Thank Flag Link Thu Feb 10, 2011
BEST ANSWER
The rate typed in this section is not meant to be your interest rate, no. This page with the rate indicated on the page is meant to be a "ceiling" or "cap". Ask your agent but this is not directly related to the rate your lender quotes you unless your agent typed that rate IN that spot. It is not meant to be WHAT your rate IS, however. Be sure to have your agent clarify what he/she typed in there and why.

I'm hopeful you may find this helpful. I can go into more description if you'd like Sloan@BrantsRealtors.com 817-223-5435
1 vote Thank Flag Link Thu Feb 10, 2011
Sam,

The rate in section C should be the highest rate that you are willing to pay for financing. That gives you the opportunity to cancel the contract if the rate you are approved for is higher and results in a payment that exceeds your comfort level.

If you'd like to discuss this further, call me at 512-797-9167 or send me an email, tom.cantalini@gmail.com.

Tom Cantalini
REALTOR(R) GRI, SFR
Century 21 HSK and Associates-Austin
512-797-9167
tom.cantalini@gmail.com
1 vote Thank Flag Link Thu Feb 10, 2011
Hi Sam. Glad you are reading your contract addendums. The 'rate' applied is a 'ceiling' on the rate you would be willing to finance. This is just another area of the contract and addendums that protect you in your purchase. A great buyer's agent has many opportunities in the documents to make sure your best interest is represented and protected. If you have further questions or concerns, feel free to contact me at debihalleck@kw.com or 682.465.3240.
1 vote Thank Flag Link Thu Feb 10, 2011
Sam,
As others have said this is a ceiling rate that you would be will to accept.
it's also an out of the contract, meaning that if for some reason the rate goes
higher than this rate, you have the right to terminate within the time guidelines.
You are not forced to terminate, but you have the option.
I would normally put a little higher interest rate than that provided to you by
the lender on the GFE.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Thu Feb 10, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
That information may come from any source. If buyer and seller were okay agreeing to 1% interest rate then it would be possible. Obviously we all know that won't happen, but as long as buyer and seller agree it is allowed.

Ideally you want the interest rate to be what the lender quotes at the time of executing the contract. But, it is open for negotiations.

Hope this helps! Let me know if I can help any further.
Web Reference: http://www.txkbroker.com
0 votes Thank Flag Link Thu Feb 10, 2011
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