Buying a home is not always a smooth process. From inspections to getting title insurance and agreeing on a closing date, unforeseen circumstances can occur. If you find that you need more time to get the money for a Kansas City mortgage, you may wonder if you can extend the closing date and how it can affect you. Luckily, you can extend your closing date, but there are some caveats.
Take Advantage of the Due Diligence Period
Remember that even if you and the seller have agreed upon a closing date, you have a due diligence period of usually 17 days. The buyer typically has seven days, but the period can be agreed upon in your real estate contract. During this time, you can:
- Back out with no consequences
- Order additional inspections
- Research insurance
- Secure your mortgage for the home
If you find you need to extend the closing date, you must give a reason in the extension application and, if granted, pay an extension fee. Extension fees vary from agent to agent and if the closing doesn’t happen, the seller keeps those fees.
A Mistake is Found in the Home
One of the ways you can extend your closing date is if the seller finds a mistake like a title defect. If cases like this occur, you will be able to extend your closing date so the seller can address and correct these issues. If the seller doesn’t correct them in the due diligence period, you can negotiate for an extension.
Just remember that even if you need an extension, the seller won’t always grant it. Extending the closing date isn’t always in their favor as they will have to pay another payment on the home which isn’t ideal for them. So if they don’t agree to an extension, they can force you to decide whether to back out or go ahead with the purchase. The rules for extending closing dates can vary from state to state, so be sure to talk to your agent to get the specifics.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.