Scheduling the Closing
You have just found the dream house and your
Realtor is writing up the offer to purchase. Since your lease expires on
Friday, the 30th of next month, you figure you can schedule the closing for
the morning and move in that afternoon. Pretty slick and easy and you don't
have to pay any extra rent, right? Well, you better think twice about this.
Closing (also called Close of Escrow) is the
day that the new home you are buying actually becomes ours. It is the day
all the final paperwork is signed and, usually, the day that all the money
changes hands (called Funding). Often, you may get the keys that day too
(known as Possession). Note the use of the words "usually" and
"often".
A problem exists which is similar to the
"travel crunch" on the Wednesday before Thanksgiving. In real
estate, things don't always happen exactly as planned, particularly at the
end of every month and especially on Fridays at month end. Why? Lots and
lots of other people are thinking just like you. The result is an "end
of the month crunch".
Mortgage lenders, title companies and other
service providers just can't handle the volume of closings that get
scheduled for the last few days of the month. So, mortgage documents don't
show up and closing get delayed. Or, the closing occurs but lender funding
is delayed. The result is angry frustrated buyers who don't get Possession
as planned.
The solution is simple. Schedule your closing
to occur in the middle of a week during the middle part of the month. Also,
be sure that you allow sufficient time - typically 30 days - for the escrow
period. You might pay a few more days of rent but the pain and frustration
saved will be well worth it.
First Published 5/31/00 (1/5)
