Question: I am trying to obtain a loan for a home on which I have placed a contract. We have tried six lenders and been denied by all. Can I get out of the sale contract after so many attempts? I was pre-approved by my broker before I put a contract on the home, so would I really be at fault?

Answer: Most standard contract forms create two mortgage obligations for buyers: First, you must make a good faith effort to obtain required financing. Second, if you qualify you must accept the mortgage described in your offer, a loan with a certain principal balance and interest rate.

Given that your broker "pre-approved" you, can he or she recommend a financing source? What about the broker representing the sellers?

Unless the brokers can come up with a mortgage source that meets the requirements of the sale contract, being rejected six times likely satisfies the common sense requirement to seek financing on a good faith basis. Without required financing you are not an "able" buyer, something needed to make the transaction work. For details, speak with a real estate attorney in your community.

Question: I would like to begin investing in real estate, but have been unable to work up the nerve to get started. I can afford a down payment on a nice single-family home or small apartment, but am not sure which way to go. Ultimately, I'd like to build a little real estate empire and be able to live off of the rents in about 15 years. Any advice?

Answer: Instead of a single-family house or a small apartment building, consider a duplex, triplex or fourplex. If you live in one unit and rent the rest then low-cost residential financing should be available.

Then, in the future, when you move, you will have an investment property which you will know how to maintain and repair.

Question: If I obtain owner financing for property and the loan documents are drafted by a lawyer, will this debt show up on my credit report?

Answer: I have had loans funded by private parties and such debt has never shown up on credit reports.

The mortgage will surely show up during a title search as a lien recorded against the property and, if you apply for a mortgage or other financing, you must disclose all debt -- including debt to private parties. Lenders need to know about such debt so they can properly determine your borrowing ability.

Question: I bought a home with many renovations -- to the interior as well as new windows, doors and exterior siding. The seller disclosure statements said the work was done with building permits and final inspections, but none of them were! I thought I'd bought a five bedroom house, but it turns out the two bedrooms the seller put in downstairs cannot be used as bedrooms because the windows are too small for exit in an emergency. Two electricians have told me the wiring is faulty and the tub should never be used the way it is. I paid a building inspector to check the siding and he said he would never approve it -- it's nailed much too tightly, caulking was used here and there.

I've seen a lawyer who suggests I take the seller to small claims court, but the maximum you can collect is $10,000. What should I do?

Answer: Show the seller disclosure statement to your attorney. If a small claims court is the only choice, see if you can file separate claims for different problems -- one claim for the siding, one claim for the tub, etc.

Was the property advertised by a broker as having "five" bedrooms? If yes, contact the state real estate department or commission and ask them to review the matter.

Lastly, did you buy this property without a home inspection? The belief here is that buyers should always get a home inspection and that purchase offers should depend on such inspections being "satisfactory" to the purchaser.

Question: I am interested in becoming a personal assistant for a broker. How do I get this training?

Answer: Most states have strict rules limiting the work an unlicensed real estate assistant can undertake. Thus your first step should be to obtain a real estate sales license. This will help you get a position as an assistant and also allow you to have more options in the future as you gain experience.

To find out more about becoming an assistant, speak with local brokers and leading salespeople in your community. In many cases, training is OJT -- on the job.

Have a real estate question? Send your inquiry to . Because of the volume of mail received, Mr. Miller cannot respond to questions individually or privately. Published letters may be edited for space and style. For comments regarding other Realty Times articles, please contact individual authors by pressing here.

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Published: January 16, 2004

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