Offer Accepted
October 13, 2019
Your home offer is accepted. What next?
Once the seller has accepted your offer on your dream home the stop clock starts ticking – tick, tick, tick.
There are a number of chronological milestones when financing your home and these include:
- Finance Approval Date – this is the date by which you must provide the seller with formal financial approval from your lender. Formal financial approval means a finance approval free from conditions (apart from the lenders standard term and conditions).Typically the seller will give you up to 28 days to provide formal financial approval.
- Structural inspection date – the date by which you must supply the seller of the structural inspection report you have commissioned highlighting any structural issues you have with the property.
- Subject Sale Date – if you have placed an offer on a property subject to the sale of your existing property, the seller will give you a certain period of time to sell your existing property (typically 45 days).
- 48 Hour clause. If you have purchased your next property subject to the sale of your existing property the seller reserves the right to accept another offer on the property as long as the new offer is not “subject to sale’. If the seller does accept another offer you have 48 hours to confirm to the seller that your offer is now free of conditions, i.e. not subject to sale, not subject to finance etc.
- Settlement date – this is the big day when the property formally transfers ownership to you. Generally, the seller will give you up to 28 days for finance approval and settlement date within 28 days from finance approval.
- If for some reason you are not able to settle in settlement date , then you have 3 business days from settlement date within which to settle. Should you not settle within these 3 business days then the seller has the right to start charging you penalty interest.
So the moral of this story is that as soon as you get notification the seller has accepted your offer, contact your Better Choice Mortgage Broker.
Better Choice Mortgage Brokers are available around the clock.
If you were really clever, and most Better Choice customers are, you would have organised a home loan pre-approval before you went shopping for a home. But that’s another story.
Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.
