Offer accepted on 1 property while under contract for another??

Question

I just found out my offer has been accepted on a property that I offered on like a month and a half ago. I'm excited, however I am already under contract for an other property and won't close for another 2 weeks. Using Conventional financing.

Any ideas on what I can do? If I recall, you cannot have 2 conventional loans under contract at the same time.

Any ideas on what I can do? If I recall, you cannot have 2 conventional loans under contract at the same time.

Dustin Allen · Answer

@Jared Smith

You can do two loans at once.  Both lenders need to know about the other loan.  They will give you a form to give to the other lender that shows what each is doing.  Keep in mind, you still need to be able to qualify for both.

Buddy Holmes · Answer

Jared,  Not sure about the two loans at once but do know at closing you are saying you don't have any undisclosed applications or loans. SO DON'T apply for a new loan until after closing.

In the first offer did you say you would apply within so many days that puts you into this conflict?  If so let all parties know that you will not be able to apply until after this closing date.

Most contracts are dependent on financing so you can use that exit if they want to hold you the loan application date.  I doubt that they would if they have taken this long to respond to your offer.  Most likely means some other offer fell through.  I'd guess that you are a bit in the drivers seat.

Cheers,

Buddy

Jared Smith · Answer

Great info @Joe Splitrock ! Thank you! I will connect with them on that today. Such good info!

Joe Splitrock · Answer

@Jared Smith you should have an expiration date on every offer, so it expires prior to making a new offer. There is no rule against having multiple offers accepted at the same time, provided you have ability to perform on all contracts. Last year I had one property under contract on a conventional loan and two conventional refinances going at the same time. I closed on the refinances a week before the purchase and used cash from the refinance for down payment on the new property. It is totally fine as long as your financial situation supports it. Just talk with your lender and make sure they can write the second loan. If not, you either need to delay closing or cancel the contract.

Jared Smith · Answer

Thanks @Dustin Allen I will ask right now. :)

Buddy Holmes · Answer

Jared. Yes that was my suggestion. If you have a good mortgage broker you can certainly ask their opinion.

Anthony King · Answer

@Jared Smith I closed on one conventional mortgage (duplex) with "Lender A" while I was working toward closing on two other properties (2 triplexes) with "Lender B" in Oct/Nov. Just let both lenders know what you're doing.

Dustin Allen · Answer

@Jared Smith

The lender will know what they need. Just tell them ASAP so they can make the adjustment.

Jared Smith · Answer

@Dustin Allen

Thanks Dustin for that insight! Is there a name for that form by chance? I want to try that route for sure and would love to point right to that for my lender.

Jared Smith · Answer

Thank you Buddy!

My agreement states I have up to 3 days to "make application for the loan"

So you are suggesting to just simply ask the seller to push everything back a bit until I close on the other property?

Offer accepted on 1 property while under contract for another??

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