     Christine Baker (Admin) | Thursday, June 08, 2000 - 06:21 pm 
You want to be sure that you know what your TOTAL contribution to the buyer's loan/closing costs will be. Have the buyer's agent write up an addendum making the changes clear. "Total seller contributions towards buyer's .... not to exceed $5,000."
You really don't care WHAT loan the buyer gets or WHAT your money is used for. The 2/1 buydown often lets the buyer qualify at a lower rate by prepaying some of the first years' interest.
You shouldn't accept an offer from buyers who don't have financing lined up and aren't pre-approved. Otherwise you might be subjected to the "lower the price or we don't qualify" demand a few days before the scheduled closing.
The "prevailing rate" clause probably protects the buyer, if they don't qualify for prevailing rates they can cancel. There should be a more detailed explanation of that clause somewhere in the contract or on the back page.
What does YOUR agent say?
I don't know enough about the transaction, your priorities and the buyer's financials and credit to advise. Refusing to amend the contract might be a good way to get out of that deal and look for better qualified buyers. |
