Posted 5.23.13 @ 10:40
A lot of sellers don’t like mortgage contingency attached to bids for luxury homes for sale, but for many buyers this is the way to go. You want to make sure that you’re protected from any problems down the road – and unless you can afford to pay all cash for this home, you’ll have to have the contingency as part of your bid. This may cost you the home if you’re working with a finicky seller, but it’s important that you’re protected the whole way through. Here we’re going to talk about how a mortgage contingency bid works and when it’s time to use it.
What is a Contingency?
There are many kinds of contingencies that can be attached to your bid; sometimes they’re about structural things that need to be fixed before you buy a home. Sometimes you need to make sure that your mortgage application gets approved before you’re on the hook to buy a house, or maybe there’s something else that you need attached to your bid. Everyone is different and this is really going to depend on what kind of home you’re buying, who you’re buying it from and how you’re planning to finance this purchase.
When the Market is Hot
Sellers tend to get to make the rules – that’s just how things go. But with more homes not moving (though the ones that do are highly desirable) throughout the GTA, you’re going to have a much better position to negotiate from. You’re going to want to be careful though; the last thing you want to do is wind up in a situation where you’re on the hook for a home you can’t afford without financing. It’s part and parcel when it comes to deals like these, and the last thing you want to worry about is not being able to afford your dream home because of a seller’s odd little quirks.
Mortgage Approval Is Standard
IF you come across a seller that insists that you don’t have this kind approval, it could be a red flag. When you work with us as your Oakville luxury realtor we’ll be able to help you figure out the situation and make sure that it’s really something you want to do. While we can’t make the choice for you, we can help you understand the consequences and if you can afford this house cash only.
The market is competitive, but most sellers are going to be fine with a mortgage approval contingency – after all, they’d rather have a buyer that can actually afford a home than a cash buyer that pulls out at the last second! When the market is hot, many sellers will want to avoid this sort of situation; they want to know that they won’t have to deal with a buyer’s lender pulling out at the last second.
Whatever you’re looking for, let us help you! We’re experienced Oakville luxury realtors that know what it takes to buy a home. Call today and see what we can do for you.