Why Waiting for a Long Closing Time Can Benefit You When Buying a House
Buying a house is an exciting and monumental moment in one’s life. However, the process of purchasing a home involves more than just making an offer. After your offer is accepted, there is a series of steps that need to be taken before the keys are handed over and the house officially becomes yours. This process, known as the closing, can take an average of about 50 days to complete after both you and the seller have agreed to move forward.
In my recent home sale experience, I found myself in a unique situation where I had to wait several months before my closing date on September 15th. Although I initially wanted to close on July 29th, I agreed to the long wait because it presented several advantages that ultimately benefited me in the home buying process. In this article, I will explore the reasons why waiting for a long closing time can actually be beneficial and provide valuable insights for anyone going through a similar situation.
1. Provide time for current owners to settle outstanding issues
When making an offer on a future home, I didn’t anticipate having an expiration date months in advance. However, the sellers had specific circumstances that required additional time before closing. For starters, they had a tenant living on the property who needed to find alternative housing. Additionally, there were outstanding debts on the house that needed to be resolved before the sale could be finalized. By agreeing to wait for the sellers to address these issues, I ensured that the house would be in a salable condition and free from any exceptional liens that could have potentially caused headaches down the line.
If you find a home you love but there are problems that need to be resolved before closing, waiting can prevent these issues from becoming your own headaches. This could involve waiting until the lease with a current tenant ends or giving the seller time to make necessary repairs. Being flexible with the timeline can give you an advantage as a buyer and increase the likelihood of your offer being accepted, even if someone else is willing to pay more.
2. To get a deal on a house that you otherwise couldn’t get
While I wasn’t thrilled about the long closing time initially, it provided an opportunity for me to get a great deal on a house that may not have been available otherwise. The house wasn’t even on the market when I made my offer, and the sellers had no intention of listing it for a while due to the problems it presented. Had they decided to list it, the asking price would likely have been higher than the offer I made. By being patient and accommodating the sellers’ needs, I was able to secure the house at a more affordable price.
When sellers have specific needs or circumstances that require a longer closing time, it can work in your favor as a buyer. By meeting their timeline, you demonstrate flexibility and willingness to work with them, which could give you a competitive advantage over other potential buyers. In some cases, sellers might even be willing to accept a lower offer from you because of the convenience you provide.
3. To allow time to shop around for a competitive loan
One of the biggest benefits of a long closing time is the opportunity it provides to shop around for the perfect mortgage loan. Rushing into a mortgage without fully understanding the terms or exploring other options can be detrimental in the long run. By setting a closing date far enough into the future, you can take the time to reach out to different lenders, compare quotes, and go through their underwriting process.
Prior to making an offer, you can even speed up the process by looking for a loan and getting pre-approved. This way, the seller doesn’t have to wait for you to go through the mortgage comparisons. In my case, I held back from getting pre-approved initially because I hoped for a decrease in interest rates before committing. The extra time I had after my offer was accepted allowed me to thoroughly deal with mortgage matters and make an informed decision.
4. To provide more time to save money before moving in
While waiting for a long closing time can be frustrating for some, it offers a unique advantage of allowing you to save more money before moving into your new home. In my situation, even though I had enough cash for a generous down payment and moving expenses, the house required some renovations. Instead of borrowing money, I wanted to finance the renovations out of pocket. The additional months provided by the long closing time enabled me to save more money and make this goal more achievable.
Before agreeing to a specific closing date, it’s essential to consider your current living conditions, urgency to move, and how quickly you can secure financing. However, if you find a seller who requires flexibility and are willing to accommodate their timeline, it can lead to a better deal on your dream home.
In conclusion, waiting for a long closing time when buying a house can have significant advantages. It provides time for the current owners to solve outstanding issues, allows you to get a deal on a house that may not have otherwise been available, gives you the opportunity to shop around for a competitive loan, and allows extra time to save money before moving in. While it’s important to consider your own circumstances and needs, being flexible and patient can lead to a more favorable outcome in your home buying journey.
Summary:
When buying a house, the closing process can take an average of 50 days from the acceptance of your offer. However, waiting for a long closing time can actually benefit you in several ways:
- It provides time for the current owners to settle outstanding issues, such as tenant relocation and resolving outstanding debts.
- You may get a better deal on a house that isn’t currently on the market, as sellers may be willing to accept a lower offer to accommodate their specific needs.
- A longer closing time allows you to shop around for the perfect mortgage loan and avoid rushing into a decision that may not be the best financial option.
- You have more time to save money before moving in, especially if the house requires renovations that you prefer to finance out of pocket.
By being flexible and patient, you increase the likelihood of securing your dream home and potentially saving money in the process. Taking advantage of a long closing time can provide you with a better overall home buying experience.
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When you buy a house, making an offer is only the first step. After your offer has been accepted, a lot has to happen before you are handed the keys and the house officially becomes yours. This takes place on the closing day and takes an average of about 50 days to get there after you and the seller have agreed to move forward.
In my recent home sale, however, I was accepted an offer to buy a house in June and my closing date is September 15th. That’s why I agreed to wait so long to actually close my dream home.
1. Provide time for current owners to settle outstanding issues
I didn’t particularly want an expiration date months in the future when I made an offer to buy my future home. I wanted to close on July 29th. But the sellers have a tenant living on the property and needed time for her to find somewhere else to live. They also had to deal with some outstanding debts on the house, which could not happen immediately.
I knew I couldn’t buy the house with exceptional liens, and I also knew I didn’t want to buy it until their tenant moved out. So I agreed to give them time to make the house salable.
If you’ve found a home you love but there are problems, waiting for those problems to be fixed before closing it could prevent these problems from becoming your headaches. This could mean waiting until the lease with a current tenant ends (as in my case) or waiting for closure until the seller has time to make repairs.
2. To get a deal on a house that I otherwise couldn’t get
Although I was not happy with a long closing date, I agreed because otherwise it was very likely that the sellers would have Not they sold me the house.
The house wasn’t even on the market when I made an offer, and the sellers had no intention of listing it for a while due to the problems it presented.
In my opinion, the house would have been quoted for a higher price than the offer I had made, so I felt like I was getting a great deal made possible by the flexibility.
When a seller has specific needs, such as a desire to close quickly or have a long delay before closing, if you can agree to meet those needs, that gives you a big advantage as a buyer. They may be willing to accept your offer because you can work around their timeline, even if someone else would potentially pay more.
3. To allow time to shop around for a competitive loan
While waiting to move wasn’t something I was keen on, it also had some benefits beyond just being able to get a home that I might not have otherwise.
One of the biggest benefits of a long close was the time to search for the perfect one mortgage loan. I wasn’t in a hurry to stall at a pace that wasn’t great, nor did I have to pick the former mortgage lender willing to approve me or the one who ensured the fastest closure.
You don’t want to rush into a mortgage that you don’t fully understand or believe is the best deal. Therefore, when bidding on a home, make sure the closing date is set far enough into the future to give you time to shop around with different lenders, get a quote, and go through their underwriting process.
You can speed up the process by looking for a loan and getting pre-approvedBefore you bid, so the seller doesn’t have to wait for you to do the mortgage comparisons. In my case, though, I’d held back from doing so because I’d hoped rates would drop a bit before I had to commit, so I was happy to have some extra time to deal with mortgage matters after my offer. it was accepted.
4. To allow more time to save money before moving
In the end, I was happy that I had a long closing time so I could save more money. Even though I already had the cash for a generous down payment and moving house, the house is in need of some renovations. I want to finance it out of pocket instead of borrowing, and having a few extra months to spare has made that more feasible.
Ultimately, you’ll need to consider your current living conditions and how fast Need moving and how quickly you can get financing before agreeing on a specific closing date when buying a home. But, if you find a seller who needs some flexibility and are willing to give it to them by agreeing to close whatever their timeline is, you may find that you can get a much better deal on your dream home.
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