Contract of Sale - avoid this scheme like the plague. Ask your lender. Libor, Equity Line, Reverse Mortgage Today's homebuyer has many financing options. A good lender can help you explore the most suitable possibilities. Without a lender's pre-approval, you may be wasting time looking at homes that are too modest, or too extravagant, for your budget.
Most people qualify for more than they think.
Sellers, and their agents, don't want to tie up their listing waiting for weeks to see if you qualify. A seller may accept a lower offer simply because you are already approved. I have worked with some very good lenders and will be happy to recommend them to you.