Question about closing a home with the money you get form selling an old house?
Me and my wife are buying a new house. Closing date is Oct 16. In the meantime we own a house thats currently being sold to another couple and they have till Oct 30th to close which I am more than certain they will. (inspection and everything has been done).
We will be using the money we will get from selling our old house to put it down as 20% down to buy the new house. My question is, What can we do so the banks can maybe either push the closing date 2 weeks pass the scheduled time? or maybe show them the document that we will be selling our house in 15 days and to approve us a loan with 20% down. What can we DO? PLease help.
Tags: banks, closing date, money
September 3rd, 2010 at 7:44 pm
What? You should have a qualified real estate attorney and.or a Realtor that is handling this transaction. Go ask them! Do not rely on answers on Yahoo, as most on this site are virtually clueless about everything!
September 3rd, 2010 at 7:44 pm
Perhaps take out a separate loan and put that down as your 20% and then pay it back asap if your credit is good enough. That or you can talk to the closing agents on the new house you are closing on and see if you can push the date back the only problem with this is that you are not guaranteed the house if someone comes with a better offer or a offer right away they could get the house. With today’s housing market I don’t think you have to much to worry about that happening. I would personally talk to the closing agent with the mortgage company you are going with and try to push that date back our company does this for cases like these.
September 3rd, 2010 at 7:44 pm
First off–Make sure that you RATE IS LOCKED IN!!!!!!! Call you loan officer and get confirmation in WRITING!!!!! It will cost you perhaps .25% to .375% in closing costs, but it will be worth it in the long run.
Then, you simply tell your loan officer / banker that you want to close at the same time as you sell your home. It is easier if you are closing both loans at the same title company / Attorney or whatever your specific state requires.
Not hard. Just have to take action to make sure that you communicate well with your LO.
September 3rd, 2010 at 7:44 pm
What about requesting a closing on your new home right after the closing on your old home? Perhaps even use the same attorney?
September 3rd, 2010 at 7:44 pm
This is not a complicated situation. Call your realtor and tell them to ask your buyers to reschedule the closing on your current home. Since your money is tied up into your current home I’m sure they will be willing. Tell them you need the later closing date or you will not be able to move forward. I am sure they will be willing to wait 2 more weeks to make sure that the deal goes through. Hope I helped.
September 3rd, 2010 at 7:44 pm
you do have a purchase contract which you signed that you will have to close on or before a certain date. You will first need to make an ammendment to the contract approved by both parties to push back the closing date. the other option would be to do a bridge loan where the bank will loan you the money for a few weeks and will be paid off with the proceeds of your home sale.