What if I don’t close on time? Closing your home purchase on time is crucial! Many lenders think if a first time home buyer misses their close date it’s not really a big deal. “Just get an extension”, they might say. But it’s not this easy, so make sure you ask your lender up front how long it will take them to process your file, and hold them to it.
How does it affect me? Much of first time home buyers lives will revolve around their closing date. You’ll give your landlord notice that your vacating, you’ll schedule movers, you’ll potentially have new furniture delivered. If you miss your close date it will probably throw a monkey wrench into your entire life, not to mention you not having a place to live for a while!
Does the seller care? The seller’s life will also revolve around the close date. They’ll be scheduling similar situations, so they want to stay on schedule as much as you do. They also may be buying a new place, and they usually can’t close on their purchase until you close on purchasing their existing home. So the seller is very concerned with you closing on time.
Sounds like just a bit of inconvenience. The biggest thing for first time home buyers to be aware of, is if you miss your close date the seller DOES NOT have to give you extra time to secure your loan. In today’s current housing market, many buyers are placing back up offers on homes that are already under contract with other buyers. If you miss your close date it gives the seller a way to EXIT the contract and potentially sell to another buyer!
Don’t make the biggest financial decision of your life without getting educated! If you’d like to learn more about the closing timeline or the home buying process in general, please go to our Calendar/Reservations page and register for one of our First Time Home Buyer/Down Payment Assistance workshops.