Thread: Can I extend my closing date?

A lot of it depends on how your contract is written. If there is anything in the contract showing a per diem charge, you could get stuck paying for every day you extend the closing.

If you have a financing contengency, and your lender is unable to close, this may be grounds to extend the closing.

I find it hard to believe the builder pays that much per day, unless the house price is in the millions. They are most likely just pushing you to close.

Is your Realtor also working for the builder as the listing agent? If so, it may be a good idea to have a different Realtor look over your contract. You want someone that has your best interest in mind.

I hope that helps! I know I am a little late on this post. Let us know how it goes.

Originally Posted by ThePropertyFlipper

A lot of it depends on how your contract is written. If there is anything in the contract showing a per diem charge, you could get stuck paying for every day you extend the closing.

If you have a financing contengency, and your lender is unable to close, this may be grounds to extend the closing.

I find it hard to believe the builder pays that much per day, unless the house price is in the millions. They are most likely just pushing you to close.

Is your Realtor also working for the builder as the listing agent? If so, it may be a good idea to have a different Realtor look over your contract. You want someone that has your best interest in mind.

I hope that helps! I know I am a little late on this post. Let us know how it goes.

There is no per diem charge in the contract, but the closing date was supposed to be October 25th and was extended to 31st, but now builder tells agent that he'll allow up to Nov. 5th only, and if we want to extend further it is $250 per day, as he claims that is what he is charged for his mortgage? This is what the agent claims that the builder told him. The agent is a listing agent.

If we want to discontinue with this lender and go with another lender, would that be a valid reason to extend closing? Can builder still charge this - even though it wasn't in the contract? The agent wants me to sign an extension agreement, which I am assuming will have the $250/day clause after November 5th...

Are you comfortable with the lender you are attempting to use? If you switch lenders now it will really push that closing date out.

1. Are you still approved for the loan you originally applied for?
2. Are the terms you are quoted on your loan in line with the terms in you purchase agreement? At least in Michigan it is typical to put the loan terms in the purchase agreement. If you are unable to get those terms you can walk away.
3. If they keep pushing you, and you truly are not ready to close, are you willing to lose the property?
4. If you did walk away, they could possibly keep your earnest deposit, again depending on how the contract is written.

I really don't like the fact the Realtor you wrote the offer through is also the listing agent. I hope they are being honest with you, but there is a conflict of interest.

What I am wondering is if your contract gives you an out. If so, you could play hardball and threaten to walk away if they won't give you the extension without charging you. But there is always the chance they will let you walk away, although in this market they should be doing everything they can to keep you around!

Can you post more information on the financing portion of your purchase agreement, if there is anything written in there?

1. Are you still approved for the loan you originally applied for?
Yes

2. Are the terms you are quoted on your loan in line with the terms in you purchase agreement? At least in Michigan it is typical to put the loan terms in the purchase agreement. If you are unable to get those terms you can walk away.
Yes, the terms were to get a 30 yr fixed mortgage with 7% or better. The rates were initially 5.875 and the agent said that we shouldn't lock now because they will probably go down more. But, sure enough they shot up - but they are still under 7%. Ideally, I would like it to be around 6%. One lender I called repeatedly this week kept giving me rates that were at least a quarter percentage lower than my current lender's rates.

Since mid-6% is still within the contract terms, do I have any recourse anyway? Or, am I obligated to stick with this if I don't want to be charged the daily fee after Nov. 5th?

3. If they keep pushing you, and you truly are not ready to close, are you willing to lose the property?
I don't think they will give up the property that easily because they supposedly met all of our conditions for the property (but there is one tree that is at the edge of the property but still within our property, according to the plans (which the agent gave me a copy of at time of sale agreement) but builder claims is on the neighbor's property. I don't know what to do about this. Since there terms of the mortgage are TECHNICALLY within the terms of the contract (7% is pretty high! But, that's what the agent had put into the contract...*sigh*, and now that the rates have gone up - he claims that he has little involvement in the mortgage - but then he shouldn't have told us to hold off on locking the rate when we could at 5.875% - but that's all verbal so I can't say anything - no proof.

4. If you did walk away, they could possibly keep your earnest deposit, again depending on how the contract is written.
Yes, we made a 10k deposit - that is one of the ONLY reasons I am a bit fearful of how to go about this.

Please advise. Thanks!

I hate to say this, but it looks like they have the advantage over you. That is a large deposit, and not worth walking away from. (At least I wouldn't want to)

You may want to bite the bullet and just close this deal asap. You really don't have an out based on financing, and the deposit is quite high. That's what makes me feel the most uncomfortable.

Going to another lender will probably not help you. Lenders all get their rates based on the same criteria, so chances are no matter where you go you will get very near the same rate by the time it is all said and done.

I don't think the tree issue will make a big difference, or really help you out. If it really is on your lot and needs removed, add that into the addendum along with the closing extension. Maybe use a wording similar to this: Tree on SW (wherever it is) corner of lot to be removed at seller's cost within 30 days of closing if determined to be within boundary lines of property being purchased. (I am not an attorney, just a Realtor / investor, so please don't hold me to the exact wording! That should be close though...)

Just be advised, it sounds like the contracts are written completely in their favor. I would try to just ask the agent to push to extend your closing date just a little longer than they have offered. Tell them you will do everything you can to close early, but you really want to be certain the lender is ready. Really push to extend a little longer with no fees, they will probably give in.

I believe the agent is being 100% truthful on the fact he has little involvment with the loan. But he should not have given you advice on not locking in the loan. Although, there was no way to really predict what the rates would do, it's kind of like gambling, or at least like speculating on the stock market.

I hope that helps. Post any more questions you have. and again, please let us know how this ends up.

deposit to walk away from. When you applied originally for mortgages usually you shop around so your credit only gets hit (3 points) once even though your credit credit was run more than once.

Builders are hurting these days and need to raise cash and are waiting on the closing because that is where there profit is.

I believe technically they don't have to extend the date, and they have already, they don't want to be stuck with a house that is C O and complete on their books.