Question: How quickly must I apply for a loan?

Answer: Many sale agreements require buyers to apply for a mortgage within a specific time period, say 7 days after the contract is signed. This is a negotiable item, however, and can be any period agreeable to both parties.

This is an important matter because if an application is not made, then a buyer may be in violation the sale agreement. A violation of the sale agreement, in turn, could be grounds to forfeit the deposit.

Thus, buyers should go through the sale agreement with great care before signing to assure that all obligations are known and understood. Work with an appropriate professional such as a buyer broker or attorney when reviewing a sale agreement.

When you meet with a lender, be certain to obtain a letter stating that you met and showing when. Immediately provide this letter to the seller's broker in the manner required by the sale agreement.