Expert: Dick Dennis - 3/10/2011

Question
Hi Dick, i would like to no if you can put a house under contract before you go for the loan and if so how do i go about that? i would also like to no if you need to use your deposit for this or is it free until you get your home loan? i have picked a house that i like and i want to go for a home loan but don't wont to miss out on this house in the mean time

Answer
You obviously are not working with a Realtor, Carla, because if you were you would not have sent me this question. A good Realtor would advise you to go to a knowledgeable lender and have that person give you a letter saying that you are qualified for X-amount of house based on your credit standing and your income. Once the Realtor has that information, you would be helped the find the house you are qualified to buy. You will not be wasting your time looking at houses you cannot afford to buy, Carla.

However, you can put a house under contract, if the Realtor who has the house listed is willing to take a chance with your credit and income, not knowing what they are. A deposit would help, but no Realtor that I know would accept your offer to buy without a deposit, usually between $1,000 and $2,500, depending on the value of the transaction. A Realtor has a fiduciary relationship with the owner of the house you like and could get into trouble if he/she wasted time with a buyer who has no proper qualifications.

And you would be foolish to try to buy a house on which you could not afford the payments. I strongly recommend you find yourself a good Realtor to help you find your house. I do wish you well.

Dick Dennis
dixiedee13@aol.com