The opening of the real estate market conditioned by mortgage rates at historic lows is today impacting against the current financeability of potential buyers . Therefore, the so-called mortgage-backed purchase proposal is used, which represents a simple practice of the real estate market to deal with some difficulties that might arise in the sale of a property.
In recent years there has been a sustained increase in the demand for mortgages
Thanks to the extremely favorable rates applied, but unfortunately it is almost no longer possible to obtain 100% financing for the purchase, after the scandal of the subprime mortgages that dragged the world in crisis.
Today the banks grant mortgages for 80% of the real estate value, and even less without the sufficient guarantees, and this can create a problem when you have to pay a deposit for the purchase but you still don’t have the certainty of granting the loan.
The problem also affects the seller, for the buyer’s financeability. The latter risks losing the deposit, while the seller risks delaying the sale of the property.
Today, finding a buyer with the right liquidity available is really difficult.
The insecurity generated by this situation can be overcome by presenting a proposal with a suspension clause, or, in simpler words, a proposal conditional on the granting of the loan.
This solution makes it possible not to lose the deposit if the buyer is not granted the loan. At the same time, the seller can get the check for the down payment, even if he cannot cash it before the bank is financed.
The advantage for the seller is that of binding the buyer to a set time for the granting of the loan
If by a certain date, which is generally one month, the purchaser will not receive the financing, the seller will be free from any constraint. He will have to return the check but will be able to negotiate the sale of the property with other buyers.
Naturally, the proposal with a suspension clause must contain all the details of the sale, including the price and terms of payment.
In any case, it is advisable to obtain an interview in the bank before signing a binding purchase proposal. The operation can be supported by a consultant from Hans Brinker who will be able to offer you the best solution to be able to buy a new home in the utmost serenity.