Tanya Rankin video blogs about the difference between a mortgage "Pre-Approval" and "Final Approval."
Tanya Rankin: Hi, it’s Tanya Rankin in Williams Lake. Whenever you make an offer on residential real estate you have what’s called “subjects” and the subjects are put on the offer to protect either the Buyer or the Seller. There must normally put on in favour of the Buyer, for example, Subject to Financing, Subject to Home Inspection, Subject to a well & septic test or inspection, quantity and quality of water, fire property insurance. Quite a few items that people may want to look into in order to achieve their Due Diligence in respect to that specific property. During that time period the property is tied up for that for specific individual because they’re going to be putting time and money into having these tests done and these things fulfilled therefore they don’t want someone to sort of sneak in and scoop them on it. But in the same time you have to be sure that if you remove the subjects, after your due diligence faze you have to come back in and remove those subjects in writing and if you remove them we have now entered into what’s considered a legally binding contract of Purchase and Sale, and once you do that it is not the time then to say “well I’m not sure if I want that house, I want to go back and have another look” or “ I changed my mind” or “I’m a little uncertain”. Real Estate doesn’t work that way, the subject removal time period is meant for you to do your due diligence so please don’t remove the subjects in writing if you’re not planning to go ahead with the sale of the home, there could be all kinds of legal issues, and things you just don’t want to get involved in. If you have any questions send me an email anytime to firstname.lastname@example.org and I hope you have a fantastic week!