When to Set Your Closing Date
The closing date is the end goal of any real estate transaction, but it is a day that needs to be established at the start of purchasing a home. There tends to be confusion for homeowners regarding when to set the closing date. These tips will help you establish a deadline that is beneficial for both you and the seller. You can also work with your real estate agent and real estate lawyer to help you choose the best date possible for all parties involved.
Tips for Setting Your Closing Date
- Provide at least 30 days from the time of the offer until the closing date. In general, most people set a closing date 30 to 45 days after the offer has been accepted. There are a few steps that need to occur between a final offer and the closing date. You must allow ample time for these steps.
- Establish a date for the occupancy of your home as well. While the closing date is the day when ownership of the home is transferred from the sellers to the buyers, the actual moving day may occur at another time. Some home sellers can vacate the property prior to the closing, allowing the buyers to move in immediately after the closing is complete. However, others may need extended occupancy in the home — up to 60 or 90 days. In the case of extended occupancy, the previous owners must pay rent to the new owners of the home.
- If you have a deadline that you must close by, you should set a closing date 10 to 14 days prior to that deadline. For example, if you need to be in your new residence by July 1st, you should set a closing date for no later than June 15.
- The closing date may have to change throughout the process. Sometimes, the lender does not give final approval on the mortgage loan in time to close by the first date that was established. If this occurs, then the seller and buyer must agree to a new closing date. After the lender has given the buyer final approval, you can choose a firm closing date.
- Set the closing date prior to the deadline for the lender’s loan commitment and make sure the closing is set in time to lock-in the established interest rate. If your closing date occurs too late, you may have to adjust the interest rate or seek approval on the loan again.
Once you have a closing date set, circle the date on your calendar and be ready to celebrate. This date is when you are going to be a new homeowner. If you have cleared all hurdles to close and have achieved final approval on your loan, then let the countdown begin. It will not be long before you are settled in your new space, enjoying the home of your dreams.