You found the perfect house, discussed all the financial details with your mortgage advisor and have decided to sign a purchase agreement to buy a new home. Everyone is ecstatic, as you should be! One of the key details of the purchase contract is the date that the transaction will close on. As the transaction progresses on, you realize that maybe the initial close date isn't ideal and you begin to wonder if that original closing date can be changed.
When buying a house, the close date is an important aspect of the purchase contract that both you and the seller have agreed upon. However, there may be situations where you wish to change the close date to an earlier date, due to a move out date, a vacation/trip, or other reasons. While it is possible to close early, it is important to understand that this can cause disruptions to the process.
First and foremost, changing the close date will disrupt the work of all the individuals involved in the transaction, such as the buyer's and seller's realtors, the escrow officer, the title company, the lender, underwriter, the loan officer, appraiser, the insurance company, insurance agent, and more. Each of these individuals have a lot of work to do to get the transaction closed, and any change to the close date can cause them to adjust or redo the work they have already done.
Additionally, changing the close date can also disrupt the transaction itself, as it may affect the timing and the arrangements that have been made around the previously agreed upon close date. Changing the close date, which is a key commitment on the purchase contract, can also disrupt other commitments that have been made, as they are all related and work together.
Remember, a purchase contract is a legal commitment. When you sign your name, you are saying that you will do everything that the agreement lists out. When the closing date changes, it disrupts everyone working on your transaction, the transaction itself and the original commitments.
So, is it possible to close early on a home loan? Sure it is! Sometimes we, as a lender, are cleared to close the transaction far before the actual close date and do have the possibility to change the closing date but just remember that it does disrupt the transaction and commitments and with that, your expectations should also be adjusted.
-Thomas Wilson
Founder of Fox Financial
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