Home Closing ?'s

Do you have a purchase contract yet?

The contract should specify the closing date - when you make your offer it will include yolur preferred closing date - the builder/seller will either accept what you offer or make a counter.

Many areas of the country are "sellers markets", and sellers will often require you to be pre-approved for financing before accepting your purchase offer.

If you have a contract, and can't meet the specified closing date that gives the builder/seller an opportunity to void the contract and sell it to someone else. They may be willing to negotiate for a delayed date, but it will most likely require $$ from you to do this.

 

Hmmm...it doesn't make sense that if you've been pre-approved that your credit would still be an issue. Pre-approval usually consists of the lender pulling all 3 of your credit reports, and collecting w-2's for the last couple of years and 3 months of bank statements.

Did you have a buyer's agent? (someone that you signed an exclusive agreement with to represent you?) If so, tell them right away about your concern regarding closing - they will advise you what to do. If only the seller/builder's agent was involved with the sale - DO NOT tell her until you figure out the consequences.

How much of a delay in closing do you think you'll need? What kind of credit issues are you trying to clear up?

You might want to check out a real estate newsgroup to see if anyone has experience/advice on how to delay a closing. The one at www.fool.com is very good. You are at risk of losing your deposit unless your purchasing contract included a financing contingency.

You may get lucky and builder will not complete the house when he says he will....this seems to happen fairly frequently from what I read.

 

I agree that it doesn't make sense that you're preapproved but you have to wait for credit issues. I can understand about the downpayment though (if you are wanting to put down more than required).

However, when I was buying my home and the closing department called me, they asked ME when I wanted to close. The house was ready the end of August but I chose to close the end of this month.

Can they charge you interest? If it's in a contract that says they can but look at it this way - you've been working with these people and probably customized the house to your specifications. I would not think highly of any company that would not allow you the leniency to close a little later. Plus, even if they found someone else to buy the house, it would still take about 45 days to close with them.

I'd say contact your agent and have your agent contact the builder and see what they say. In the interest of customer service, they will probably let you.

Good luck.

 

I would definitely say if you have an agent to speak with him/her immediately. One thing most people do not realize is that agents can and should be involved in new home purchases also. Remember, the sales agent works for the builder. They are trying to get the best deal for the builder and not you.

So, if you are purchasing a new home, when did you place the contract. If the house already built? Are they projecting the closing date upon when the house will be finished? Most builders are never on time. So, usually, the builder can dictate somewhat what the settlement date will be; however, in most states, buyers are allowed to chose a date and their own settlement company if they so chose.

The issue seems to be did you originally agree to a date and now find the date hard to meet. Then, I would stay strong and speak with the sales agent to get the date you need. They may break down and give in especially now that it is closer to the end of the month. New homes are similar to new cars. Companies will negotiate more towards the end of the month to meet quotas.

The other issue which has already been identified is what is truly going on with your loan. Are you preapproved or prequalified? Is your lender telling you that you need more time? Then you have some ground to stand on.

Mike G.

 

Are you pre-approved, or pre-qualified? There is a big difference. It sounds like you are pre-qualified, which means your income to debt ratio are enough to afford the estimated payment. But a mortgage company has not approved you for a loan. Prequalification is only a starting place to make sure you are looking in the right price range.

Have you actually filled out all the application papers for a loan? I'm a RE agent in TX, and although mortgage companies will stipulate, ie we will give you a loan, but you must pay specific items, but I've never heard of them stipulating getting your credit scores up.

You never said what is in your contract. It depends on how it is written. The ones we use (again this is TX, different states have different laws), specifies automatic extension times if the loan company does not have all the necessary documentation to complete the loan...which means no additional payments to extend a closing date need be made by the buyer.

Really need more information.

 

The buyer generally schedules the closing although the purchase and sale contract generally gives a date of "on or about". If time is of the essence, sometimes they will say "closing to take place on such and such a date".

I didn't see where you mentioned if there was a contract?


L