In most cases, the buyer chooses a tentative closing date and makes it part of the offer. The contract usually states that closing will occur "on or about" that date.
Your closing date is the day you become the legal owner of your new home. During the contract negotiation phase, you (the buyer) and the seller set a closing date, which must be listed on the purchase agreement contract.
When you sign your purchase agreement, the closing date is set — but that's only an approximation. Your closing date will be officially set by the attorney handling the transaction. Between signing the purchase agreement and handing over the keys to the new owner, you may experience a change in the closing date.
Closings are typically a collective effort scheduled by your your settlement attorney/agent and lender. They'll schedule the closing for a time that is convenient for both you and your real estate agent, so that all may attend.
Unless you're paying cash for the home, choose a closing date that's convenient for you, the seller and your mortgage lender. Most people schedule the closing date for 30–to–45 days after the offer has been accepted – and they do this for good reason.
When you write an offer on a home, the real estate agent will ask you to request a closing date as well as an occupancy date. The occupancy date will be the day that you move into your home. ... In some cases, it will be immediately after the closing appointment.
Grant an Extension
One action you can take is relatively simple: grant the buyer an extension, no strings attached. Your real estate agent can negotiate a new closing date that generally will add an additional 10 to 30 days to the closing date, giving the buyer more time to tie up their loose ends.
Buyers who use conventional financing to purchase a home can expect to close 30-45 days after the contract is signed. Special loans, such as first-time home buyer programs, VA and FHA loans can take longer to close because the requirements are stricter.
Closing or Completion Day Definition
Ultimately, this means that the buyer will be signing and reviewing documents prepared by the notary or lawyer with regards to their mortgage loan, down payment, closing costs & purchase price, and the property title and ownership gets transferred from the seller to the new buyer.
Once a real estate seller and buyer agree to terms, the seller normally signs a real estate purchase agreement or sales contract. Real estate buyers are generally expected to sign purchase agreements first, though, especially during offer and counteroffer phases.
For a typical transaction, the buyers and sellers meet on the day of closing at the title company to sign the paperwork, and the buyers get the keys to move in right away. Another scenario would be that the seller needs time after closing to move and may need to do a “lease-back” from the new owner.
Although failure to close by the seller on the specified contract date might result in breach of contract, a buyer must be able to prove actual damages before a court will award monetary compensation. ... As such, courts will award damages if a buyer can prove a quantifiable amount.
Typically, sellers pay real estate commissions to both the buyer's and the seller's agents. That generally amounts to average closing costs of 6% of total purchase price or 3% to each agent. Additionally, sellers often pay for the buyer's title insurance policy, which is a low-cost add-on to the lender's policy.
The short answer. Homeownership officially takes place on closing day. ... Fortunately, closing day usually only takes a few hours, and if everything is wrapped up before 3 p.m. (and not on a Friday), you will get your new keys at closing.
You can schedule the closing at any time as long as it falls within the 30 to 90 days you have to close. Just be aware that if you schedule too close to the deadline and something delays the closing, you might not be able to reschedule before the commitment expires.
The seller is responsible for removing all personal items before closing. And if the seller came back to the former house to retrieve items left behind? “The previous owner would be trespassing,” says Hourlier. If you're just making an offer or have a signed contract, the seller still owns the property.
Clear To Close: At Least 3 Days
Once the underwriter has determined that your loan is fit for approval, you'll be cleared to close. At this point, you'll receive a Closing Disclosure.
1 week out: Gather and prepare all the documentation, paperwork, and funds you'll need for your loan closing. You'll need to bring the funds to cover your down payment , closing costs and escrow items, typically in the form of a certified/cashier's check or a wire transfer.
Largely due to the real estate market as well as the lending institution, this can easily extend to a month and a half, even two months. For example, in a normal market, many lenders are averaging just 30 days. Larger banks and credit unions, on the other hand, will often take longer than your average mortgage lender.
Back Out of the Sale
Unless your sales agreement grants automatic extensions or sets an “on or about” closing date, you're out of contract if the closing date passes without a closing or a signed extension. With no contract, you're free to walk away -- and you may be entitled to the buyer's earnest money deposit.
Closing might be pushed back if the buyer and the seller have to resolve problems highlighted by a home inspector's report. Typically, the seller offers to repair the issues or credit the buyer to offset the cost of any fixes. ... Sometimes, simple errors and changes can cause a closing to be delayed.
Yes, you can choose your closing date; however, all parties must agree to the proposed date. ... It is also prudent to note that if the buyer is working with a lender, their mortgage rate can changes if closing doesn't go as scheduled. So it is in all parties interests to stick to the agreed closing date.
While the home closing process usually takes 30 – 45 days, you should be prepared to close as quickly as possible. Although some delays are unavoidable, you can do your part to ensure a seamless closing by fulfilling all unpaid debts, preparing all the required signing documents and depositing the down payment on time.