Third Party Financing
Everybody wanted to talk about third party financing addendum, let’s make sure that we are filling out all of the information. I know when we’re going through these, it’s easy for a couple boxes to get missed and we want to make sure we have them filled out, whether we have the buyer and seller. So again, Street Address and city at the top. Conventional financing.
So it gets marked. Does your buyer or does the buyer have just a first mortgage or do they have a first and second mortgage? This box right here under a one is missed probably 80 percent of the time that I see between buyers and sellers. So.
Guys, please, let’s make sure we have a marked box here so we can all stay in compliance with the contract. So let’s just make sure we have every bank filled in the information. Feldon. So this covers conventional financing. This B covers the Texas Veterans Loan, which I had the privilege to work with Linda on a contract that had this. It was a little different and unique and it was a great learning experience.
And thanks, Linda, for that. We had sellers on that one, so that was interesting. Fha insured financing, make sure that it’s filled out if you don’t know what falls in this section and there’s different types of FHA loans. So I think it would be a good thing to read up on those. There’s like two or three B’s, two or three KS. The majority of the time we see two or three B’s.
But make sure you know what your buyers getting and you’ve talked to their lender about what they’re doing, and we fully understand it. And VA guaranteed financing, USDA guaranteed financing or reverse mortgage financing, the approval financing, the buyer’s approval.
So there’s there’s two different purchaman. And we’ve talked about this. There is buyer approval and there’s property approval. Two different things. So the buyer’s approval is when the buyer has turned in all their documents to the lender and the underwriters gone through them and says the buyer is worthy to buy a house they can qualify for up to this amount.
Doesn’t matter what the property is. Let’s just get the buyer fully approved. We have several lenders we work with that can do that. They get the buyer fully approved and we don’t have to worry about it. So whatever’s put in here, it needs to be made sure that it’s discussed with the lender, that so many days the buyer can be fully approved and we don’t have any issues.
If you already have a buyer that’s been through underwriting that just doesn’t have a property. This may be one you want to check. The contract is not subject to buyer obtaining buyer approval because they already have it. So make sure that you are fully informed with the lender’s property approval, completely separate has to do with the appraisal, has to do with if there’s any lender required repairs, if there’s FHA, sometimes that does occur. If it’s Vuh, sometimes that does occur.
I would think even in conventional, it can occur. Like if there’s a big hole in the roof, it may occur. So property approval is completely separate than buyer approval. So please remember that when we’re walking through. Contracts in negotiations.
If you do have an FHA loan, let’s make our VA loan, you want to make sure you fill out this blank if you want more information on how this blank works. It is a one way you can negotiate an FHA VA and not use the addendum for like the appraisal waiver, because with a voucher VA, you cannot use that addendum.
So this would be one place that you would work through that and then make sure everybody has signed on page two and everybody’s initialed on page one. So let me know if you guys have any questions and have a great day.