When you purchase a property as an owner occupied residential property, the bank wants to make sure you are indeed living there as your principal residence. If it was an investment or second home you should be getting an investment type of mortgage, because it is a higher risk to the bank, it comes with a higher interest rate and higher donw payment. If you are indeed living there you should have no problem signing that you intend to live there as your principal residence,. if you are not intending on occupying the property , then before signing, your attorney can let you know the consequences. I think agents need to tell you why instead of just saying the obvious and generic statement of contact your attorney without any reasons why you are being asked to sign that form.
Why aren't you discussing this with your attorney? It means they want you to put in writing that you will be occupying the property and are not buying it as an investment property. Please discuss with your attorney.
When you purchase a home as a primary residence versus an investment property, you usually enjoy the benefits of a lower interest rate because most people will try a lot harder to keep a primary versus an investment property. The banks view investment properties as a greater risk. Good luck.
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Senior Real Estate Specialist
Century 21 Princeton Properties
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