If you’re considering selling your current home, you probably have questions about the closing date and how it will affect you. The intended closing date is always stipulated in the purchase contract and agreed on by both parties, but it is not set in stone and can change.
Here are five FAQs about the closing date and how it could affect you as a seller.
What is a closing date?
The closing date is the date that the seller agrees to transfer ownership of the home to the buyer. Your closing date is typically several weeks after a purchase agreement has been executed, but can vary depending on the method your buyer chooses to finance the home purchase. For example, cash buyers typically close a lot more quickly than buyers who require a mortgage.
Closing dates can be flexible, depending on the parties involved and the required timeline. It is not unusual for a closing date to change, especially if the buyer is financing their purchase, as their loan process must be finalized and all funds in place before closing is possible.
Can you choose your closing date?
Yes, you can choose your closing date; however, all parties must agree to the proposed date. If you do not adhere to the agreed closing date, as the seller you could be held in breach of contract by the buyer.
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.
Does the buyer apply for a mortgage before the closing date?
Yes. If they wait until the closing date to apply for their mortgage, they cannot close on the agreed date and could lose their escrow deposit. It is up to the buyer to secure their financing to meet the closing date and conventional loan lenders generally require up to 45 days to approve the mortgage and finalize all financing for the buyer.
The sales agreement usually includes the date by which the buyer should being the financing process. Do not accept sign a purchase agreement if there’s no timeline about the buyer’s finances because chances are the deal won’t close.
Can you close before the closing date?
Yes, if the buyers financing has been finalized and they have received a clear to close notice, it is possible to close before the closing date.
If you need to change your closing date, you must check with the other parties to ensure that the proposed new date works for them also. Your real estate agent can explain the situation on your behalf and arrange to have the closing date changed.
How long does a closing take?
Closings typically take anywhere from 30 to 45 days after the offer is accepted, but can take longer depending on the inspection period length and the outcome of the appraisal.
For example, if your potential buyer finds issues with the home they would like fixed, you will have to negotiate the repairs or possibly accommodate a change in the agreed sales price. This can cause a closing to take longer than anticipated, especially if you cannot come to an agreement with the buyer quickly.
You can ensure that your closing is as speedy as possible by handling all negotiations through your real estate agent. As experienced professionals, most real estate agents have overseen many real estate transactions and understand how to streamline the process to make sure that it is as quick and efficient as possible.
If you have any more questions about the closing date and how it affects you as a seller, you can get answers from a Clever Partner Agent. As top-performing agents in their field, Clever Partner Agents are knowledgeable about the real estate process and offer their full services for a flat fee.