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So it turns out that it's very likely I'll be able to close on Tuesday.
Yet another monkey wrench, I have to put 5% down instead of 3%. This throws me off.
Now the contract says closing [no later] then the 28th.
My lease is up at the end of the month and I'd much rather get two more paychecks in instead of one before closing, so even though I can close on Tuesday Could I stave it off until the 28th? When the bank says yes does that mean you have to get it in gear?
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,302,067 times
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In general most contracts have a clause known as the "Time is of the essence" clause. This means that both parties must act with deliberate haste and not stand idle. Hence the no later than date) Your bank loan commitment is probably good until the 28th. In todays shaky loan market if you're dealing with a bigger financial institution, you're probably OK, but we've all seen lenders close the doors overnight in the past 6 months. I'd go ahead and close as soon as you can, remember you may not be making a mortgage payment for almost 60 days anyway.
Good Luck!
If you don't have the cash to close until then, you can't close until then. I've always hated delays in closing because I once had a seller die two days before closing. LOL that was back in the days of checks taking a week to clear and I'd already written some from my upcoming commission money. OOOPS.
In general most contracts have a clause known as the "Time is of the essence" clause. This means that both parties must act with deliberate haste and not stand idle. Hence the no later than date) Your bank loan commitment is probably good until the 28th. In todays shaky loan market if you're dealing with a bigger financial institution, you're probably OK, but we've all seen lenders close the doors overnight in the past 6 months. I'd go ahead and close as soon as you can, remember you may not be making a mortgage payment for almost 60 days anyway.
Good Luck!
If you don't have the cash to close until then, you can't close until then. I've always hated delays in closing because I once had a seller die two days before closing. LOL that was back in the days of checks taking a week to clear and I'd already written some from my upcoming commission money. OOOPS.
If you absolutely need to extend the closing date, then you will need to add an addendum to the contract mutually agreeing to extend the date and provide that to the title company. In addition, as has already been mentioned, you will need to speak with your lender and get their written approval to make sure that they will still fund your mortgage.
Listen to DMensca. That is correct information. A contract is a contract. Changing the rules changes the game plan and could involve a lot of problems, most would be negative.
Once you change a contracts terms, everything previously goes out the window and you may need to start over, which could cost you a lot of $$.
Well I definitely don't want to change the contract.
What I was trying to state was that the contract says closing Jan 28.
My lenders think everything they need to do will be done by Tuesday, thus it'll be possible to close on the 14th/15th.
So I'm just trying to see even if the lenders are all done and ready to close since the contract states the 28th can I wait until the 28th. Or do I have to just do it now.
Dmenshca what you wrote rings true. I definitely don't want to have it all fall apart because I want to wait. Anything might happen.
Well I definitely don't want to change the contract.
What I was trying to state was that the contract says closing Jan 28.
My lenders think everything they need to do will be done by Tuesday, thus it'll be possible to close on the 14th/15th.
So I'm just trying to see even if the lenders are all done and ready to close since the contract states the 28th can I wait until the 28th. Or do I have to just do it now.
Dmenshca what you wrote rings true. I definitely don't want to have it all fall apart because I want to wait. Anything might happen.
If closing is scheduled on the 28th, you cannot close on the 14th unless you have an addendum to the contract with both parties agreeing to the early close date. It's just the opposite of closing late.
The closing date is set as per the contract, and a change of date either earlier or later requires mutual agreement in writing. So the answer is Yes, you can wait until the 28th.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,302,067 times
Reputation: 6471
The "on or before" verbiage of the contract refers to the time is of the essence clause. In CA, you would have to close as soon as you are able. In CA escrow instructions supercede the wording in the contract as it is generally regarded as a newer contract. So if your escrow instructions give a specified date and both parties have agreed to it, that is the date of closing. If you have any doubt, your escrow agent can advise you best.
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