In Texas real estate, a third party financing addendum is a legal document that outlines the terms and conditions of financing that is being used by a buyer to purchase a property. The financing is provided by a third party, such as a bank or mortgage company.
From the seller's perspective, the third party financing addendum provides assurance that the buyer has secured financing for the purchase of the property. This addendum specifies the type of financing the buyer is using, the amount of financing, the interest rate, and the terms of the loan. This information helps the seller understand the financial commitment of the buyer and allows them to plan accordingly.
From the buyer's perspective, the third party financing addendum outlines the terms and conditions of the financing they are using to purchase the property. This document typically requires the buyer to provide information about the financing, including the loan amount, interest rate, and term of the loan. The addendum also sets forth the conditions under which the buyer can terminate the contract if financing is not approved.
The third party financing addendum is used in situations where the buyer is obtaining financing from a third party to purchase a property. This is common in real estate transactions where the buyer does not have enough cash to pay for the property outright. The addendum is typically added to the purchase agreement and becomes part of the contract between the buyer and seller.
In summary, the third party financing addendum is a legal document that outlines the terms and conditions of financing that a buyer is using to purchase a property in Texas. It provides assurance to the seller that the buyer has secured financing and helps the buyer understand the terms and conditions of the loan they are obtaining. This addendum is used when the buyer is obtaining financing from a third party and becomes part of the purchase agreement between the buyer and seller.
Contact Texas Roadrunner Realty when you are ready to start the process of buying or selling a home.
Written by: Texas Roadrunner Realty
Image from Canva
