In which situation is a buyer typically required to submit a loan application?

A buyer is typically required to submit a loan application upon acceptance of the agreement because this timing aligns with the buyer's intent to move forward with the purchase process formally. Once the seller accepts the buyer's offer, the buyer needs to secure financing to fulfill their obligation to purchase the property. Submitting the loan application at this stage allows the lender to process the buyer's request for a mortgage and evaluate their financial qualifications, which is essential for completing the real estate transaction.

This timing also ensures that the buyer has a better understanding of their financing options and obligations, enabling them to manage the timeline associated with the closing process more effectively. Additionally, many purchase agreements include deadlines for securing financing as part of the contingencies, making it critical to have the loan application submitted as soon as the agreement is accepted.