Details and How They Affect Your Offer
Most buyers do not have
enough cash available to buy a home, so they need to obtain a mortgage loan to
finance the purchase. Since you will probably make your purchase contingent
upon obtaining a mortgage, the seller has the right to be informed of your
financing plans in order to evaluate them. That is one of the major reasons
that financing details are included in your offer.
As part of your offer, you
will need to disclose the size of your down payment. Once again, this allows
the seller to evaluate your likelihood of obtaining a home loan. It is
easier to get approved for a mortgage when you make a larger down payment.
The underwriting guidelines are less strict.