- Feb 25, 2013
- Reaction score
Significance of Closing IN. Property Sale? Buyers' POV.
@lamlawindy Yes, agreeing on both above points.
1. W. a delay in closing, buyers' financing might have fallen thru. Current mortgage int. rates are crazzzzy low. A delay could end up being 3 mo, 6 mo, a year, when int rate could be considerably higher, perhaps putting buyers' monthly obligation beyond their ability to pay.
2. If, as @lamlawindy says, any legal problems developed w BM, could be waaaay longer until closing. And in the meantime, if buyers had been planning to make improvements soon after closing--- kitchen, bath reno's, new roof, update HVAC? Adding a guesthouse, a work/artist studio, stables for horses, whatever? Risky for buyers to spend (or borrow more) $$$$$$ to improve before they actually have title.
Ppl can say buyers insisting on closing are mean or selfish. But maybe petitioning for gdnship was just as much for BM's benefit as the buyers. BM may have had liquid assets on hand to pay for the subdivision tract. Or not, IDK. Just thinking aloud. my2cts
Financing falling through is not limited to the subject of interest rates. It could mean the offer of credit is set to expire and the borrower will need to requalify again -- perhaps even a new lender.
Since the pandemic, it's not so easy -- suddenly your employer and/or your employment is seen as iffy.