Several people and organizations are involved in setting the closing date, the seller, the buyer, the mortgage company, the city, the attorneys, and the real estate agents. When you think of how many people must coordinate their schedules it is amazing that a date is ever agreed upon. The primary driver for the date is when the money is available from the mortgage lender. Once the money is ready, then all the other people can work at getting all the paperwork completed. It is important that once the mortgage company has set a date, the closing not be delayed. Mortgage lenders will only hold the rate quoted open for a period of time. If the closing is delayed the mortgage rate may increase.
The sellers usually are the ones least affected by the closing date. Sellers do not need to be at the closing in person. Many times they are already in their new home. Sometimes a seller is unable to move out of the house prior to the closing, usually due to construction problems in his or her new home. In those cases, the seller can agree to pay the buyer rent to stay in the home, or more practically, move into a temporary residence.
The buyers have their own set of issues regarding the closing. Buyers may need to vacate where they are living prior to the closing. As with the seller, the buyer needs to find a temporary residence. The buyer may also need to store his or her belongings prior to the closing date. Most professional moving companies have facilities where they can store their customers’ belongings for a period of time or the buyers can rent a storage facility near their new home. No matter the inconvenience, the buyer should cooperate with the mortgage lender about the closing date.