Home Closing Tips: Deadline Awareness
Posted on: June 28, 2017 by Signature Insurance Group
Ensuring a Smooth Home Closing Process > Following Deadlines
In this series of posts, we’ve discussed some of the ways you can ensure your home closing sale goes smoothly. While there are a lot of moving parts that go along with a home sale, it’s important to stay on top of contingencies, tend to the home, and abide by deadlines if you want the sale to go through. In this next installment, we’re going to explore the common deadlines to be aware of. Next, be sure to address your Orange County Home Insurance needs.
Why are there strict deadlines?
According to Business Insider, many transactions do have stringent closing deadlines, whether because:
- the REO sale contract imposes a daily penalty on the buyer for a late close, or
- the buyer or seller has personal reasons for needing to move in or out, or
- a late close will require the buyer to bring in more cash for closing costs.
Homeowners should also note that the home closing process works similarly to dominoes. One process relies on the other, and it triggers a chain reaction. Therefore, being on time with deadlines can help ensure the home is closed within 30 days.
For example, for closing to happen on a certain date, the loan must fund on a particular date, and for that to happen, both sides must sign off on various documents on a certain prior date and the buyer must wire their cash into the escrow holder by a particular date (which often requires an in-person visit to the bank during the workday).
If the agent assisting you with selling your home has elected to put an offer and response deadline into the contract, it’s critical that these dates are followed. This filters out the serious prospective buyers as opposed to investors or people who are just starting their home search. Bear in in mind that the automated systems banks use to evaluate and scan paperwork will discredit any offer, whether you accepted it or not, if the documents are not turned in on time.
Contingency removal deadlines.
The most common types of contingencies allow prospective buyers to back out of the sale if:
- The home appraises for less than the purchase price.
- The buyer’s loan falls through.
- The property is not in good condition upon inspection.
These typically apply between 7 and 20 days after the seller has accepted the offer. Ensure your real estate agent is following up with the buyers to meet the required contingency deadlines.
About Signature Insurance Group
At Signature Insurance Group we know how important it is to get the best rates and coverage for your assets. Call us today for more information on our Orange County Vacation Home Insurance at (800) 464-3606.