How Financing Details Affect your Offer
Interest Rates
Another reason for including financing information
in your offer is to protect yourself. If interest rates
suddenly become volatile and rise quickly, as sometimes
happens, you may be looking at a mortgage payment much
higher than you anticipated. By putting a maximum acceptable
interest rate in the offer, you are protecting yourself
from such an occurrence.
At the same time, the seller will probably want to see that you have some flexibility in the financing terms you are willing to accept. If interest rates are currently at eight percent and you indicate this is the highest rate you will accept, you would be able to cancel the contract without penalty if interest rates rose past that point. The seller would suffer because they have lost valuable marketing time and may have made their own plans based on successfully closing the transaction.
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