Las Vegas homebuyer turns to expert after seller requests rate increase
Dear Expert:
Why would a seller ask for my mortgage rate to increase? I recently put an offer in on a condo. The seller countered, and in their counter they asked for my mortgage rate to increase. I’ve never encountered this before and am confused as to why they would ask this.
Baffled and Befuddled
Dear Befuddled:
It would be my guess that there is a “cap” of the max rate the buyer will accept for financing, or for which he can qualify, in the contract. Perhaps this seller feels that the cap is too low and wishes it to be a bit higher so that in the event rates went up, his deal will not fall out. This is because the actual rate would now be higher than the max rate set by the cap. I cannot imagine any other reason why a seller would care what rate the buyer is paying. The Realtor or lender should have explained this contingency. Fred Grohgan,
Senior loan officer
W.J. Bradley Mortgage Capital
Officer: 702-924-2893; cell: 702-807-1200