I Want The Keys and I Want them Now. When May I Have ’em?
It’s finally here! The day you’ve been waiting for! Yep! It’s closing day! YAY! This is the day you officially become a home owner. It’s the day that you’ll be handed your keys and walk over your new threshold into your dream home….or is it?
Many buyers are unpleasantly surprised to discover that the day that money changes hands and papers are signed is not always the day they get their keys. Sometimes the day you receive your keys does not come until long after closing. Why? It is usually due to a contract provision known as Possession.
It is true that usually possession happens the same day as closing. However, the contract may provide for the seller to have a bit of time to move out. This “bit of time” is typically conditioned upon funding ( the moment the escrow agent disburses the transaction monies.
In the majority of cases, the buyer’s mortgage company is to blame for any delays in funding. Many times they require the signed documents to be reviewed before authorizing the funds to be disbursed, or they may not disburse the funds to the escrow agent until after closing. For an excited and anxious new home owner, this can be pretty frustrating and disappointing.
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Situations like this are why it pays to have a good understanding of the terms of your contract and the policies of your mortgage lender when planning your first visit to your new home.
Feel free during the home buying process to ask your Realtor (buyer’s agent) as many questions as possible. That’s a big reason why you have them! They’re experience and expertise can help you out a lot with working with your lender ( or even choosing your lender for that matter) and the whole home buying process.