How Is Your Closing Date Determined ?

Closing dates are often a bit confusing to people, one would think that closing as soon as possible is always the only way to go but there are a few factors you will need to keep in mind.  There are steps to determining the correct closing date for both the buyers and sellers and will be tweaked during the process of getting into full contract.

Presenting An Offer & Your Sales Agreement: - This is when the buyer will be setting the "date" they would like to close, and does specify that is on or about.  However their will be specifics things that should be brought up at this point.

• Does the buyer have something to sell before they would be able to close on the purchase ? 
• Will the buyer be in a position to accommodate a seller whom need to make a purchase ? 

The on or about date can change from the time of your initial offer and contract signing if there was a significant amount of time between the 2 events.  Your attorney will be the one who puts in a "formal" on or about date.  

Contract Signing: Your attorney will be the one who will have the ability to change a closing on or about date if needed.  Typically most buyers and sellers are unaware that their are actually 2 dates in the contracts that will be binding.  

• The mortgage commitment date, is the first aspect of the contract.  This specifies how long the buyer will have to get a mortgage which averages from 30 days - 45 days from the day of fully signed contracts.  
• The true closing date, is what specifies you actually getting the sale finalized.  The reason there are 2 different dates is because not only do you need a mortgage commitment you will also need to obtain a clear title, proper permits, certificate of occupancy, and surveys.  This can sometimes bring some un-expected time delays.

How Long After Your On Or About Do You Actually Have ? 

There are many factors that can come into play during the sale or purchase of a home.  You have a "grace period" from 30 days of your on or about closing date.  There are times where that can be extended past that but clear communication is an absolute must in order for all to go smoothly.  Your attorney and agent should be in touch with one another so that they are aware where in the process all the moving part are.  

Closing Dates On Short Sales: 

Short sales and foreclosures are often a bit unpredictable because although they buyer may have nothing to sell, and the ability to close quickly the paperwork for the sellers is much more involved.  

• You will be in contract longer within a short sale because first you must receive bank approval on the price, but you can not get their approval without me in formal contract.  This is a touch thing to estimate because the bank is not able to give you a timeline of when you should expect to hear an answer regarding your offer.  
• Surprisingly to many people the smaller banks tend to respond quicker than the larger banks, this is attributed to less pending short sales.  Certain banks have now been required by law to respond to offers within a period of time to keep buyers from being stuck for months waiting for a response.  
• Once you have gotten the okay from the bank you can safely assume you will be closing within 60-90 days.  You will need to keep in mind the bank will make no representations, so your agent should be as proactive as possible by checking that the home has all proper permits and COs.  You can do this by filing a FOIL request with the local town or village.