Buying Tips #3 Subject to Finance Clause

So you’ve put in an offer to buy the home. Fantastic! But the process doesn’t stop there. The owner of the property wants to know more than just the dollar amount you’re willing to pay. They want to know the ifs, buts and maybes that accompany it.

These are known as the ‘subject to’ clauses. There are several of them and we’ll deal with the others in subsequent videos but today we’re looking for the ‘subject to finance’ clause.

Let’s face it: there aren’t too many people with enough money to purchase a house simply sitting in their bank account. Most people get pre-approval but then need to give a copy of the contract to the bank manager, who then sends the valuer to the property to ensure they’re not overpaying for the home.

This process not only protects your financiers but also you, and before the bank manager or your finance provider gives you the green light, they need to jump through a few hoops, which can take anything from 10 days to 4 weeks.

At Jens Veal Partners, our advice is to be patient and bunker down as you wait for the verdict. The most important thing to take away from Tip #3 is that your offer needs to be ‘subject to finance’ so that you don’t end up in a sticky predicament. Next time you tune in, we’ll be covering more helpful tips about how to deal with clauses.