Understanding “House Under Contract” with Priority 1 LendingVerify my mortgage eligibility (Dec 1st, 2023)
The term “house under contract” often pops up in real estate listings, creating a sense of anticipation for some and confusion for others. Priority 1 Lending, is here to break down the jargon and make the home buying process as transparent as possible. Let’s delve into what it means when a house is “under contract,” what stages follow, and the possibilities that can occur during this phase of the home buying process.
What Does “House Under Contract” Mean?
When a house is “under contract,” it means that the seller has accepted an offer from a buyer, and they’ve both agreed to specific terms. However, the sale is not yet final. There are still contingencies or conditions to be met before the transaction can be completed.Verify my mortgage eligibility (Dec 1st, 2023)
The Stages of the Contract Process
1. The Offer: This is where the buyer formally states their interest by making a written offer. This document outlines the proposed price, terms, and conditions of the purchase.
2. Negotiation: The seller may accept the offer, reject it, or make a counteroffer. If the parties agree, they sign the contract, and the house is considered “under contract.”Verify my mortgage eligibility (Dec 1st, 2023)
3. Contingency Period: This is a set time frame in which specific conditions must be met for the sale to proceed. Contingencies may include home inspections, appraisals, mortgage approval, or the sale of the buyer’s current home.
4. Removing Contingencies: Once the contingencies are met, they are formally removed, usually by the buyer submitting a written document to the seller.
5. Closing: Once all the contingencies are removed, the parties move to closing, where the final documents are signed, and ownership is transferred.Verify my mortgage eligibility (Dec 1st, 2023)
Can a House Under Contract Fall Through?
Yes, a house under contract can fall through, typically because one or more contingencies were not met. Common reasons for this include inspection issues, appraisal not matching the sale price, buyer’s financing falling through, or the buyer not being able to sell their current home. If the contract falls through, the house can go back on the market.
Can Another Buyer Make an Offer on a House Under Contract?Verify my mortgage eligibility (Dec 1st, 2023)
Although it’s possible, it’s generally unlikely. However, if the house is listed as “active under contract,” it means that while the seller has accepted an offer with contingencies, they may be open to backup offers in case the current contract falls through.
How Priority 1 Lending Can Help
Navigating the stages of a house under contract can be complex. That’s where Priority 1 Lending, , steps in. Our team of professionals is ready to help guide you through the process, providing support and information at every stage.Verify my mortgage eligibility (Dec 1st, 2023)
Priority 1 Lending offers a range of mortgage solutions, tailored to your individual circumstances. We work closely with you to understand your financial situation and provide the right solution, whether you’re a first-time homebuyer, looking to upgrade, or even considering an investment property.
At Priority 1 Lending, our aim is to ensure that you’re well-informed and confident about every aspect of your home buying journey. With our assistance, the path to your dream home becomes much smoother. Whether it’s understanding the concept of “house under contract” or any other aspect of the home buying process, we’re here to support you every step of the way.Show me today's rates (Dec 1st, 2023)