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Company Loan Type APR Est. Pmt.

Should I work directly with the seller agent

Posted on: 29th Dec, 2005 01:41 am
We will be buying a home which is yet to be built and we are negotiating with seller's agent whose husband owns the property. Is it ok if we work directly with the agent or should we appoint someone to work on our behalf ?
Hi,

It is ok if you are dealing directly with the broker or the lender because the seller agent may charge commissions on behalf of his work. But if you have not yet signed the sale agreement, then it is advisable that you have your contract reviewed by a real estate attorney.

You may also ask a professional home inspector to inspect the construction of your home and make such inspection a part of your purchase agreement.

Thanks,
Jerry
Posted on: 29th Dec, 2005 01:55 am
Thanks for the answer.

Will it be a good idea to lock in the interest rate now or wait until our house gets closer to being built? Our house will not be finished until July 2006.
Posted on: 29th Dec, 2005 02:17 am
Hi,

According to me it will be very difficult if not impossible to lock in a rate seven months in advance. Also what will happen if the construction of the house goes beyond the lock in period.

If you lock in the interest rate now and then if the interest rate falls when your house approaches completion you can defiantly switch over to the lower interest rates with another loan but you will loose the lock in fee. Therefore it will always makes sense that you talk to the local lenders and see what is available to you.

Thanks,
Jerry
Posted on: 29th Dec, 2005 02:29 am
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