You are currently in a situation where you are sitting with your realtor, contemplating about signing your name to purchase your home. It could be your first home, second home, or even your 10th residence, and you have made the majority of decisions regarding your home, including the price you want to offer and any other conditions or considerations for the closing date.
If you want to have a smoother closing process and reduce potential stress, consider what date you close on when purchasing a home. It doesn’t matter if your lawyer is the only one telling you the closing date, they are not doing any favors by not disclosing it to anyone else.
Below are nine instances that are considered the least ideal for concluding your home purchase, organized according to the possible challenges and issues they may entail.
Are you planning to obtain a mortgage to pay for your home purchase? If so, you should give yourself approximately 60 days for the closing process, as most closings and everything else takes time. You may need to hire movers, set up utilities, get home insurance, and prepare for the down payment. Plus, your mortgage may not be processed and funded by the closing date if you rush the process. Most lenders get busy and it takes time for mortgages to be processed.
Does the thought of having your possessions on a moving truck sound appealing? If you are close to defaulting on your bridge purchase financing, the transaction sale can be extended to help you. What if the mortgage payments are late? Planning to save a few dollars by avoiding bridge financing can help you close the sale and purchase on the same day without defaulting.
It is too dangerous to proceed. Instead of attempting to rush, it is advisable to undertake two tasks simultaneously. Start by moving at your own pace, and then complete any necessary renovations to clean up the property before finalizing your purchase.
When you are closing, it is likely that closing quicker will mean many other transactions as the same. When there is not a high volume of transactions, your deal will not be swamped. Everyone is busy at the end of the month, including movers, lawyers, and banks. Now, imagine how many lenders there are funding mortgage transactions on the same day. Check out the lineups at the tellers. Visit a bank on the same day of the month.
Refer to point 3. Comparable situations to the start of the month.
Both the beginning and the conclusion of the month can be equally challenging, similar to the middle of the month. Refer to points 3 and 4.
It is quite amusing to see how people try to make up for the lost day by racing like rats in a transaction. This multiplied workload is because offices and banks shut down the day before and after a holiday.
Take a drive on the 400, 401, 404, or any significant road or highway on a Friday starting from 3pm. What will you discover? Numerous vehicles and individuals. Who might be present in those vehicles? The attorney from the legal firm representing your seller. Perhaps it is someone from the bank. On Fridays, particularly early in the day, various offices and establishments attempt to close in order for individuals to begin their weekends, which also marks the beginning of cottage season. It would be advisable not to schedule your transaction on a Friday when people may need to stay late in the day.
Do you know what your lawyer is doing between 9am and 11am on most Monday mornings, after a weekend, when people have to respond to numerous emails and phone calls from their law clerks?
I can’t believe how often a client will tell me that I will be away on vacation during the last week of my home purchase. Is that a problem? With remote signing and wiring of funds, issues can arise where you do not have a printer and scanner, computer, and internet. But that is not a bad issue as it is not the main problem. Delaying your closing date could be if you are in town until the vacation is over – it is a big deal to stay in town until the closing date.
How about closing your life will be much easier and you will likely not have as many closings to fund your mortgage, your lender will have an easier time finding movers for you. When should you close your home purchase? Sometime between the 2nd and 3rd week of the month, preferably on a Thursday or Tuesday.
Congratulations on your new home acquisition and keep these suggestions in mind before selecting your next Closing Date 😊!
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