When an offer is made on a home, there is a are several specific dates in the contract to which attention is required. Option periods, financing approval, but there is also a day written into paragraph 9 called the Closing Date. Specifically, it says:
So what does that mean? It means that's not a suggested date, as some lenders and realtors seem to suggest. It's an 'on or before' date to which the contract cannot be extended without approval from both parties to the contract. This is often the subject of negotiation and, if you're the one making an offer on the home, you better know if your mortgage lender can meet that deadline before you submit the offer. It's no secret why I always suggest being fully approved before even going out looking for a home. Now this date can be moved up if everyone is ready without any problem, but it does require an amendment signed by all to be extended. You might be wondering what can happen if this is missed without an extension. Paragraph 15 reads:
Neither of those is something you really want to have happen. Make sure you not only can meet the deadline, but everyone is aware of this date. Before I write a contract, I always check with my lender to see if they can meet the deadline. If i'm the listing agent, I also call the buyers lender to make sure they can meet it before accepting an offer. This can be especially crucial when your seller is buying a new construction home. Some builders will charge late fees if the closing date is missed, whether it's the fault of your client or not.
So if you're in the market to buy a home, Contact Me Today! I can help you get set up with mortgage and insurance people to make sure you're able to buy a home and have the best coverage.
You can also get a copy of my Home Buyers Handbook when buying to learn about the process!