Real Estate Education Friday - Closing Dates
Today we are shedding some light on the top three reasons why the closing date🗓 is a really important factor in an offer and a key🔑 component of the negation process📄.
1️⃣. If a seller sells a home before their mortgage is up🆙, and they are not permitted to move that mortgage to another property they will incur some sort of breaking the mortgage fee💸. Rule of thumb 👍is that this amount is roughly 3 mortgage payments.
2️⃣. Even if the seller is able to port their mortgage to a home🏡 they bought, which will likely close before this deal is done, they will technically own two homes for the period of time⏰. We do this for a number a reasons. It’s not a good idea to close on the same date as there may be complications with wire transfers and delays to the next day🗓. If this happens, the client may not have a home🏡 to go to if the sale of their priority went through but their buy sale had complications. A bridge🌉 loan is used if you have a firm agreement purchase of sale for both the buy and sell of the properties, the bank🏦 offers you a bridge loan in which they will use the equity in your existing home🏡 and allow you to carry the properties for the short period of time⏰. There fore if the closing date is too far off, a bank may refuse the bridge finance or it may cost the seller too much on the land to make the deal feasible
3️⃣. If the seller has not secured a property to move to, a fast closing does not serve them well. They may have to find short term accommodations, which again may be costly🤑.
Knowing what the seller is looking for when it comes to closing may save you money💵 and a lot of headaches🤕in the long run!
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If you are thinking of selling your home and have questions about the selling process or anything else, you can contact me via text 📲 (416) 876-9998 or email 📧 dcinelli@royallepage.ca
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