How soon after an accepted contract should I give notice to my landlord? Finding the right home and negotiating an accepted contract are only half of the process involved to becoming a homeowner. The other half include inspections, appraisal, title work and underwriting. Many things can go wrong with those that can delay or end altogether your closing on the home. Therefore, you should not give notice to your current landlord until all contingencies for closing on your home have been removed:
1. Inspections - Even if the home looks great, you never know what hidden issues a thorough inspection will unveil. The repairs needed may cause a long delay. The seller may not want to make any repairs or you may decide the issues discovered are a deal breaker for you.
2. Appraisal - The home may not appraise for the sale price. The seller may decide not to reduce their sale price to the appraised value. In these cases, the bank will not lend more than the property is worth. So the buyer either has to come up with the difference (not recommended) or walk away.
3. Title work - It's possible that your closing could be delayed or cancelled completely because there is a lien that has to be cleared or can't be cleared.
4. Underwriting - It ain't over until your file has satisfied all underwriting conditions and receive "clear to close" from underwriting. Also, there are times that for one reason or another, it's not possible to meet all of the underwriting conditions.
Avoid placing yourself in a precarious situation by giving notice to your landlord only when all the stipulations have been met. It's not uncommon for buyers who were too quick to give notice to their landlord and prematurely hired a moving van to have nowhere to go on the day they were supposed to have closed. Even if you end up paying a few extra weeks in rent, it will be worth it than to rush with your notice and end up homeless.