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Your Closing Day – MLS London

MLS London

Frequently with MLS London we find situations where the possession day on a buyer's new home purchase coincides with the closing date on their current home sale while aiding buyers with their home closing needs. Both transactions may be scheduled to conclude usually just before weekend.

Unfortunately, many MLS London purchasers are ignorant of the possible requirement for interim (bridge) financing since their representatives are ill-prepared for same-day closings. If a buyer's need for bridge finance is discovered at the last minute, the expenses and stress will almost always be higher than if the buyer had obtained funding earlier in the mortgage approval process.

So, when and why do you need bridge financing?

Many realtors and Mortgage Brokers think that a property purchase and sale will always close on time, allowing the client's equity to be transferred from the sale to a buy on the same day.

However, a smooth and timely closure of a mls London real estate deal necessitates the convergence of a number of independent elements outside the control of the lawyers involved. While the majority of transactions complete on schedule, delays can arise for a variety of reasons (some of which are listed below).

  • The lender's mortgage instructions for the mls London property are not generated early enough to allow the buyer's mortgage to be prepared, executed, and funded on time.
  • The buyer is out of town and unavailable to sign paperwork when the buyer's lawyer requests it.
  • On closing day, an unsatisfied and previously revealed funding condition is uncovered.
  • The lender is overburdened and fails to issue the mortgage advance check when it is requested.
  • The seller fails to vacate the property on schedule.
  • The buyer is remorseful and refuses to complete the transaction at the last minute.
  • Delays in funds to lawyers accounts

A customer who wants to utilize the selling profits to pay for a purchase and finds on the day of closing that the transaction is not completing for any reason has a major issue. That customer will find it difficult, if not impossible, to acquire bridge financing at the last minute for their mls London property, and the delay in closing the transaction will put the client in breach of contract with respect to the client's acquisition.

The customer will not, at the very least, be given possession of the new residence. In the worst-case scenario, the client's deposits will be forfeited, and he or she may be sued for further damages as a result of the failure to fulfil purchase commitments of the mls London home. The fact that the client may or may not be able to recoup any of those losses from the buyer of the client's previous house is probably a tiny consolation.

Due to these dangers, it is always preferable for the customer to separate the two transactions by securing bridge financing. Once the bridge loan is issued, it will allow the client's acquisition to close on schedule, regardless of any delays or issues with the transaction. Even if the transaction ultimately closes on schedule, arranging interim funding ahead of time will relieve tension and concern about the potential that it may not.

At REMAX we recommend buyers and sellers doing their part in making sure that all documents are carefully reviewed and everything is taken care of in advance. Normally we would check in with our respected buyers or sellers a week in advance and make sure we are able to address hiccups with the mls London before it becomes a last minute issue.

If you are selling and buying a new mls London home – it is a stressful process in itself. Make sure to confirm if you buyer is not in the same shoe. Just imagine if they have to received funds from their buyer to close their home. Those funds would then be stressed to your lawyer to close you home. Finally, those funds being forwarded to the sellers of the home you bought. Definitely expect delays – you are better to break the closing over two days and utilize a bridge loan.

Looking for MLS London Homes? Click here to find your property with Yasir Khan at RE/MAX.

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