“Hubbard Clause Risks”
Hi Joe,
We have decided to take our home off the market, rent it and move forward on the purchase without the Hubbard clause. Our hand was forced as they have another buyer for the property. I know you indicated that our debt ratio is fine even if we don’t sell our current home, so let’s move forward.
By the way thank you for getting our rate locked when you did, definitely better than we expected.
Do you think we can close next week?
When I go through the pre-qualification process with clients that have a home to sell before they purchase, I will always go through the numbers to see if they will qualify for the purchase without the sale of their current home.
In most cases clients will not want to carry two mortgages as the same time, but at least they should have the numbers so that they can make decisions that are best for them.
I also explained to these clients that if they close in January, they will not have a mortgage payment for the new property until March. Then they can decide if they really want to rent the current home or keep it on the market since they are heading into the spring market.
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