Whether your buying or selling your home a common question once the Offer to Purchase is signed and agreed to is... "Now What Happens?".
If you're the seller this tends to be one of the more anxious and stressful parts. The waiting. Occasionally a Seller will have conditions to meet such as verifying ability to discharge their mortgage, or subject to the sellers lawyers approval. Most often though the conditions are for the benefit of the buyer and the Seller is waiting.
While you're waiting you have some decisions to make with your agent. Do you keep advertising as "For Sale", or do you modify the advertising to reflect the current status as "Conditionally Sold"? It is not uncommon for a buyer to not remove conditions. Its a lower probability compared to deals that go thru but you never know, the deal could "crash". So continuing to market your property in every aspect maybe the wise thing to do. especially in a slow and highly competitive sellers market. Perhaps the best course of action is to keep advertising and marketing until it is "Sold". I recommend talking to your REALTOR® to see if this is a fit for you, perhaps you're sick of viewings and teh pressure of keeping your home clean and ready for a break.
Buying and having you offer accepted. This is exciting and can be stressful as well. For the most part I would lean towards the exciting if you've done the leg work upfront. What can happen after that offer is accepted?
- A copy of the offer and the listing feature/information sheet is sent to your mortgage person to facilitate the lending approval process. While you've been in an gotten pre approved, the next step is to ensure that the Bank and the insurer (CMHC) approve of the house and will give you a mortgage commitment letter stating exactly what your interest, principle and interest will be.
- Depending on the nature of your employment and documents required, you may need to grab updated check stubs, letters of employment confirmation, Notice of Assessment and all that financial stuff to be sent to your mortgage person.
- You'll need to book in and attend a property inspection. Although this is not mandatory it is highly recommended. You wouldn't by a used car with out checking it out thoroughly by you, your buddy, your dad or a garage would you? Same applies to your house.
Those tend to be the biggest hurdles when dealing with your offer as they are most often subject to financing and an inspection. Like mentioned above if you've grabbed all of the necessary financial information and haven't missed telling the mortgage person about that credit card you forgot to pay and they wanted to collect, yes they pull a credit bureau but if you're upfront with them they can head that off before its an issue the day of condition removal, then you should be fine.
Important to note that a website calculator doesn't mean tyou are approved, and a verbal approval is not he same as a written approval or commitment letter.