PURCHASE BID SECURE FINANCING

The importance of Purchase bid secure financing

When someone bids as a buyer to purchase a property they have to show that they have finances to do so. They can arrange for a purchase bid secure financing letter from the lender who can agree to finance the deal if at all the proposed offer gets accepted by the buyer.

The lender agrees to finance the deal by having a deed of trust or by securing a mortgage from the buyer who is seeking the finances from the lender.

The letter that is legally binding must contain the name of the two parties that are engaging in the selling and purchasing of the property with the date and the exact description of the property along with its location.

The documents must also contain the terms and conditions that are implied by the lender, the rate of interest and the interest per se payable by the borrower and the amount that the borrower is eligible for as discount for the brokerage.

The document must also specify the cooling off period wherein if the borrower is not able to arrange for the finances in a certain time period then the deal gets cancelled and any deposit that has been made by the buyer is returned in full. This amount will either be returned to the buyer or be dispersed among the seller and their broker as per the agreement that was made in the initial phases of the bidding.

This document should be signed by both the seller as well as the purchaser with date.

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Sample Template Preview

PURCHASE BID
SECURE FINANCING

The following shall be considered a legally binding amendment to the agreement made between ___________________ and ___________________, dated _______________,
for the sale of ___________________________________________________________.

This bid is made on the condition that if the proposed offer is accepted, purchaser shall acquire a loan secured by a deed of trust or mortgage on the subject property with the following terms: ___________________ (specify terms) per year, monthly payments not to exceed _____________ (amount) ($________) including interest, and loan brokerage or discount not to exceed ___________________ percentage points.

In the event that a loan for the described terms cannot be arranged by purchaser within ___________________ days after the bid acceptance, then the conveyance terms of the property shall be null and void and the earnest deposit made by purchaser _____________ shall be returned in full to purchaser or dispersed among seller and seller’s broker in terms agreeable to both parties.

____________________________________                                __________________
Signature                                       Date

____________________________________                                __________________
Signature                                       Date

____________________________________                                __________________
Witness                                       Date