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.
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