Who controls the closing date on a home purchase — the buyer or seller?
When you place an offer to buy a property, you sign a purchase agreement with the seller. This document is legally binding and spells out the events that must take place before your escrow can close. There should be a place to fill in the date of closing. The buyer will fill it in when making an offer. The seller can counter with another date prior to accepting the offer.
Make sure that you put down a date. We went along with a “the lender didn’t exactly know when we could close as it is contingent on the appraisal, so let’s just put that we must close sometime within the next 90 days.”
That really stunk. We were promised week after week that we would close. Then we were given a set closing date to close on, verbally. It would give us plenty of time to have our first baby before having to move. Nope, the buyer called while we were in the hospital and said that we must close and move within four days as he had to be out of his house. Not a happy closing. There was some tears and my husband made a long speech on having the first few days of his daughter’s life ruined by the buyer. And we had planned on the verbal closing date, so we were homeless (with friends) for several weeks until our new house was ready.
Don’t let that ever happen to you. Agree on a closing date which seems reasonable. Sometime in ninety days is a long time. Go ahead and set that closing date, in writing, for ninety days if necessary. If you both agreeably want to change the date later on, you should do so in writing.
Typically most closings will occur within 30 to 45 days of the signing of the contract. This allows plenty of time to make property inspections, review the title report or deal with any other complications which might call for legal assistance.
Both parties should know what they are responsible for in the closing. If the property happens to have a cloud on the title or need repairs before purchase, it shouldn’t hold up the closing. If it does, it shouldn’t be more than a day or two.
For instance, when we purchased our new property, the title report wasn’t ready until a few days before closing. There was a small glitch with the title, which pushed back closing by five days. Reasonable setbacks are acceptable.
If there is a change in your closing date for any reason, make sure that all parties are aware of it. Keep your escrow or closing officer informed of exact dates, as she or he will be prorating and calculating certain expenses and credits, such as interest, taxes and insurance. These are calculated right up to the day of the closing.
The lender will also have an important role in the closing date. To avoid any delays in closing by the lender, make sure that you are pre-approved for your mortgage in advance of signing a purchase contract. The closing agent will also need ample time to prepare title reports and closing documents.
Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today.