Yesterday, we left you with a cliffhanger in the “insider” negotiation process. This is the loan questionnaire that I would send to directly to the lender. It would allow me to make a better determination regarding the financing.
Date
Name
Company
Address
City, ST ZIP
Name:
The property at (property address) is now on the market for sale. To clear up any confusion regarding the existing loan on (property address), the loan number is (insert loan number). I would appreciate your assurances on the following loan terms. Please be advised that I will keep you informed every step of the way should a buyer wish to assume this loan.
PAYMENT AMOUNT
What is it?__________________________________________________________
How often can it change?_______________________________________________
Is there a limit on how much it can change (over a one year period and/or over total life of loan)?______________________________________________________________
Are there exceptions to that limit?_________________________________________
NOTE RATE
What is it?__________________________________________________________
How often can it change?______________________________________________
What index is the change based on?______________________________________
What is the spread (also called margin) between the note rate and the index? ____________________________________________________________
Is there a limit to how high and low the note rate can go?______________________
Are there exceptions to that limit?________________________________________
NEGATIVE AMORTIZATION
Is negative amortization possible under the terms of this loan?___________________
If so, how often added to the principle balance? ______________________________
What is done if negative amortization grows too large? ________________________
ASSUMABILITY
Is this an assumable loan?_______________________________________________
Is there a “due-on-sale” clause in the note?__________________________________
Current owner of the loan______________________________________________
Contact Name from the Bank __________________________________________
Telephone number___________________ Email___________________________
Number of years left on the loan_________________________________________
Points to assume_____________________________________________________
All fees to assume
1.____________________ 2.____________________ 3.____________________
4.____________________ 5.____________________ 6.____________________
Estimated approval time_______________________________________________
Approximate principal balance of loan $__________________________________
Thank you so much for your help.
Sincerely,
Seller/Listing Agent
Company
Borrowers/Owners consent to release information to (insert your name):
__________________________________________________________________
__________________________________________________________________
Borrower/Buyer:_____________________________________ Date:___________
Borrower/Buyer:_____________________________________ Date:___________
During a negotiation, it will be more important what the research says than what the seller says. Tomorrow, we’ll share the “insider” financing checklist that I have developed over my many years of negotiating loans for my clients. If I have to go for a new loan, I want to understand it for myself; remember it is more important to achieve the right terms than the right price.
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