Should the financing clause specify mortgage terms?
Hey everyone. Long time lurker, first time I couldn't find an answer without posting. So thanks to you all for all that I've learned from RFD threads so far.
I feel like this should be a simple question, but I'm getting conflicting advice from my realtor and lawyer.
Consider this subject clause in a real estate purchase offer (I'm the buyer, in BC, haven't signed it yet).
On the other hand, my realtor is adamant that this condition should work as-is and that it's actually good for me because it "clearly says that the offer should be to your satisfaction", and that she doesn't like to include mortgage terms because that would "give the seller more information about your financial situation". But I don't understand what she means by that, I'm not giving the seller the terms of my pre-approval or anything personal, just a list of mortgage terms that could be considered barely-acceptable, such as "20% down, 3 year term, 25 years amortization, max 3.5% interest rate".
I searched, but couldn't find any recommendations for this online. So, how is it usually done? And why would the realtor disagree with the lawyer on such a simple thing? Do sellers really see specifying the mortgage terms in the clause as a negative?
Thanks for any advice.
I feel like this should be a simple question, but I'm getting conflicting advice from my realtor and lawyer.
Consider this subject clause in a real estate purchase offer (I'm the buyer, in BC, haven't signed it yet).
Lawyer says this subject is so vague that it is basically unenforceable. Meaning, as a buyer I am not well protected by it because it doesn't put any specific limits on what terms should be acceptable to me. Being self-employed, I don't want to be forced to seek out and accept a private lender's 10% interest rate offer. So the lawyer recommends to include specific mortgage terms such as loan amount, amortization period, mortgage term, and interest rate.Subject to the Buyer being approved and satisfied with financing at the current rates and conditions, with a lender of the
Buyer's choice, to be supported by an appraisal equal to or greater than the purchase price, if required by the lender, on or
before <date>. This condition is for the sole benefit of the Buyer.
On the other hand, my realtor is adamant that this condition should work as-is and that it's actually good for me because it "clearly says that the offer should be to your satisfaction", and that she doesn't like to include mortgage terms because that would "give the seller more information about your financial situation". But I don't understand what she means by that, I'm not giving the seller the terms of my pre-approval or anything personal, just a list of mortgage terms that could be considered barely-acceptable, such as "20% down, 3 year term, 25 years amortization, max 3.5% interest rate".
I searched, but couldn't find any recommendations for this online. So, how is it usually done? And why would the realtor disagree with the lawyer on such a simple thing? Do sellers really see specifying the mortgage terms in the clause as a negative?
Thanks for any advice.