It's disturbing to hear that you have an agent, yet you are asking this question. Don't get me wrong, we are very happy to assist you. I'm just wondering if you have asked your agent and didn't get a straight answer.
Basically the answer to your question would depend on how the offer was written. If you have put down that your offer is contingent on loan approval, appraisal, survey, clear title, inspection etc...
The contract is legal and binding unless it states that the contract is contingent upon third party financing. You need to work quickly on getting preapproved, and you also need to realize that a seller might not even consider your offer w/o a pre-approval letter. I also suggest that you take your concerns to your Realtor, and if for some reason that person cannot answer your questions ask to speak with the broker. Good Luck!
I'm curious if the listing agent requested your pre-qualification letter prior to even presenting the offer to the owners? I would not schedule the appointment to present an offer on an owner's property in McKinney or anywhere else in the DFW Metroplex without making sure I had gathered this letter from the buyer's agent and spoken personally with the loan officer beforehand. In the meantime, it's possible someone else could come along and offer on the house with all the proper documentation and your offer would be passed over. A great buyer's agent will make sure they write a thorough and complete offer, including pre-approval letter from a known and qualified lender.
The contract is binding and you have way out of it, but you have to know that your offer will not be strong without preapproval letter. If I am the listing agent, I would not advise my buyers to accept and offer without pre-approval letter. You should have got pre-approved before you started looking for a home. What would happen if you are not qualified to buy this home, you have way out of the contract but you are wasting your time looking houses, you can't afford.
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The short answer to your question is that it is binding but there are outs for you such as the option period and financing addendums. But, you should get pre-approved with a reputable lender so you know payments and,especially in today's changing financial markets, the program(FHA,conventional) so you are informed with how much down and whether buyer's closing costs assistance is needed.
But, your Realtor is just desperate to write a deal and not doing you any favors. Your Realtor needs to know what type of financing you are doing before he/she ever writes a contract. Typically, a seller will ask for a pre-qual letter anyway before accepting. They do not want to risk binding their home to someone who cannot truly purchase it.
If you put it in writing, it sure is. The first step before even looking never mind making offers is to get prequalified, especially these days. Go to a trusted and local lender, they will be able to do it for you. You need to move fast before your offer gets accepted. Dont fall over yet though, because the offer should be contingent upon you getting financing and if it is, that is your way out by providing a denial letter from the mortgage company. good luck with your purchase.
There is some debate about this. It could depend on your financial situation. If you need a loan to buy the house, I'd think it would be about impossible for the seller to force you to buy without a loan. If you have signed a contract though you do have some obligations. Preapproval is typically not a requirement to write a contract, but you typically will need to make your best efforts to obtain financing.
So yes it could be binding....should be binding....but are there ways to get out...yes.....are you having second thoughts?
Do you have a more specific question about your concern as to why it would be binding or not?
David, your Offer is NOT binding until the Seller signs and delivers it back to you (there are a variety of ways this can be done). So, if you are not sure you will qualify at THIS point, ask your agent to withdraw the offer and get yourself pre-qualified with a mortgage co. or a bank; then, you can re-submit your offer if it is no more than your pre-qualification.
Your offer is binding unless there is language in the contract stating that it's contingent upon your financing. Do you need a referral to a great loan officer? You'll need to get qualified straight away and it requires you to gather up paperwork such as w2's, IRS returns, bank statements and such.
Yes the contract is binding if all parties agree and sign. I can't imagine why a listing agent would forward a sales purchase contract unless it had lender approval. I would recommend contacting a mortgage broker ASAP you dont want loss your earnest/option money. I am a Dallas realtor and loan officer contact my office assistance. 972-699-9111 http://www.lynn911.comhttp://www.homes-for-sale-dallas.com
Typically there is a window of time called the option period where you can obtain your financing. It doesn't take long to get pre qualified ..I would highly recommend you do that ASAP. It is always best to know what you qualify for and see if there are any issues that may need to be addressed before you start putting in offers. I am sure there is a good reason of why you were encouraged to do it this way...but move quickly and get the pre qualification done. I would be happy to help if you want to do complete today please call me.