So, you’re considering your first home purchase – or, you’ve fallen in love with a listing and you want to upgrade your current home; how much time do you need to get everything in order? Let’s find out!
Starting point: Mortgage pre-approval and pre-qualification.
This part of the process should take you anywhere from 24 hours to 3 business days. During this period, it is imperative that you provide a full documentation package to your mortgage professional for review. The less information you have to go searching for later, the faster you can breeze through the next few steps.
Offering on homes: In hot real estate markets most realtors will advise you to be prepared to offer same day/next day after viewing a home you liked. With plenty of competition, you’ll want to know your numbers ahead of viewing homes and make sure you’re comfortable with the mortgage payments and down payments required.
Subject removal period: Traditionally, this would be a 10 day period – leaving a comfortable amount of time for an appraisal, inspection, financing and any other conditions to be satisfied. Again, with many families shopping, and plenty of competing offers, a common strategy is to offer with a short (3 day) subject removal period. This means you must have EVERYTHING ready from the starting point.
From subject removal day to closing day: anywhere from 3 weeks to 3 months – depending on the negotiated dates. While it may be possible to complete on shorter notice, it’s not ideal and you may find yourself paying exorbitant rush fees to appraisers, inspectors, lawyers/notaries and everyone else involved in making this happen for you.
From lawyer appointment to closing day to picking up the keys: Lawyers will be instructed by your mortgage lender immediately after your financing has been fully satisfied. It’s imperative that this happens no later than one week before closing, but ideal if it happens right away after subject removal or before. Leaving minor little documents and details to the last minute only puts you, the buyer/borrower, in a vulnerable position. It’s better to act fast and be organized during the document collection/mortgage finalization process.
Closing day is usually 2-3 days prior to possession day. A smooth and successful closing can often lead to early key handoff! Everyone wins!
For more information on this, or anything else financing and mortgage related – call me, I’d love to chat!
Rebecca Casey
604.833.8938
