This preview shows page 1. Sign up to view the full content.
Unformatted text preview: sed financing is not available, the contingency fails and the entire contract falls. DEPOSIT RECEIPT
Form 13–1 is a portion of the first page of a CAR standard form deposit receipt available for use throughout California, identifying financing contingencies. Form 13-1: Purchase Agreement (partial) 13-2 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 13: QUALIFYING THE BORROWER Dynasty School (www.dynastySchool.com) 13-3 REAL ESTATE FINANCE WHY PREQUALIFY THE BUYER?
Many real estate salespersons wait for the lender to qualify the borrower (after the buyer has selected a home to purchase) and hope that their buyer will qualify for the loan. The real estate professional in his or her first visit with the buyer can, however, gather information that will aid the professional in qualifying the prospective buyer. This qualification of the buyer is a help not only to the real estate salesperson, but also to the buyer. The buyer will have a better idea of the maximum mortgage amount that he or she can support with his or her present income. Once the maximum mortgage is established and the buyer has determined the amount of money available for a down payment, the maximum sales price of a home that the prospective buyer can afford can be calculated. To establish the maximum sales price, the maximum loan amount and the amount of down payment are added together. For example, in your meeting with a prospective buyer, you learn that the maximum conventional loan your buyer can afford is $200,000 and he or she has $25,000 for the down payment. The maximum sales price is $225,00. You should explain to the buyer that the maximum loan amount is based on the current guidelines of the lenders in the area, not just your own guidelines, and for the prospective buyer to afford a home with a higher sales price, he or she must either make a larger down payment or be able to establish the existence of additional income that will meet the lenders guideline...
View Full Document
This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10