Until the property changes hands, it is still the seller's responsibility. Selling quickly allows the seller to free himself from liability for any problems with the property. This can be a great motivation for a seller with an older home that has systems that are nearing the end of their useful life. The shutdown is generally 30, 45, 60 or 90 days.
Customizing the length to suit the seller's needs can often close the deal with a more expensive offer. Usually, a seller wants a quick close. If you have all your ducks in a row, you may be able to do it for 30 days. But what if the house they're moving into isn't ready for another 60 days? They'll need more time.
Find out what they need and then give it to them. I've seen a lot of lower bids win with this tactic. Once it is a mortgage, the closing period is usually extended from 30 to 60 days; closing a purchase mortgage is usually a few days faster than closing a refinance. The stakes for closing a purchase late are higher, so everyone tends to be more motivated to act quickly and follow the process as scheduled.
Closing late can affect the seller's plans or leave the buyer without a place to live, among other problems. The type of mortgage also affects closing time. Government-backed loans take longer to close than conventional loans. Market conditions also have a big impact on the time it takes to close a mortgage, as shown in the following table.
Look at what Covid-19 did with the closing deadlines and notice that refinancing isn't always slower than buying. The table also shows the difference between closing a purchase versus Refi and closing with different types of loans. This process can be faster and more convenient than the traditional method, which involves face-to-face meetings and the delivery of physical documents. Even FedEx can't beat the speed of digital.
But the best thing if you can't close it 100% online, or if you don't feel comfortable with it, is to use a mobile notary who will come to your home or meet you in a place of mutual agreement. The appraiser will also note if the home is in good condition to meet the standards of the loan you are requesting. If it isn't, the seller will need to meet those standards, or you'll have to start from scratch with a mortgage to renovate your home, such as the FHA 203 (k) loan, the ChoiceRenewation loan, or the Homestyle Renovation loan. Most sales contracts give the buyer one last chance to tour the house within 24 hours after the liquidation.
On the tour, they can check the condition of the property and the agreed repairs. Buyers who are already pre-approved when making an offer and who stay in close contact with their mortgage lender will have the best chance of quickly closing a home.
