Rookie Questions

[Cliff Hudson]

Hi guys, I've 2 questions. Please help.


1) What do people mean by a house " UNDER CONTRACT for 100K?"


2) Should I get a pre approval loan from the bank first before looking for the kind of property I'm looking for? I'm asking this because when I found the property I want, don't need to waste time waiting for a loan to get approved.

Please pardon me if my questions sound a little stupid. Thanks

[Shanti S.]

Correct - but a couple of points -

buyer must actually buy the property. Closing in one month is not easy to do with any sort of financing - so you'd be looking for a serious cash buyer.

and if there is no closing, yes you walk away, but chances are you have put the homeowner in an even more difficult position than they started in - motivated sellers most likely to give you a contract with room for your profit in it may be in a major personal or financial bind and be depending on you to perform. Please consider their needs too.