Insights & Articles
Six Tips For Ensuring Your New House Closing Runs Smoothly
Should you find yourself purchasing or selling a new property this summer, here are a few “do’s and don’ts” to ensure your closing runs smoothly for all parties.
1) Avoid closing your deal on a Friday, especially if it is at the end of the month. Banking is quite busy during this time, and you may run into delays with funding. If the closing does not get completed on the Friday, you will be forced to wait through the weekend, as opposed to simply waiting one weekday.
2) Avoid buying and selling on the same day. If your purchase closes first and you require the funds from your sale, consider using “bridge financing”. This is a temporary financing option that helps homeowners “bridge the gap” between the time of purchasing their new home and selling the old home. You will incur some interest costs in the process but it will be minimal and well-worth it compared to the stress you will face if you purchase and sell on the same day and one or both of those transactions are delayed.
3) Get your bank to deliver mortgage instructions to your lawyer. This will allow your lawyer to prepare the file well in advance and correct any issues with the mortgage documents. 4) Be available by email and respond to questions from your lawyer regarding third parties such as insurance agents and mortgage brokers. This will make your process much faster, and will keep all parties happy.
5) If you are selling your house, keep your property insurance in place for one extra day following closing. This will protect you in the event that your closing is delayed one day and the per diem cost of doing so will be negligible.
6) Ensure you (and anyone else going on title) are available during the week of your closing, so you can meet with your lawyer to sign documents. Also ensure that you keep any upcoming vacations in mind when you sign the offer. Do not attempt to close your purchase or sale when you are out of the country!
Abide by these tips are your closing will go much smoother, and make your lawyer’s life much easier!
About the Authors: Patrick Clancy and Aaron Ender
Patrick Clancy is an associate lawyer practicing in the areas of business, real estate, wills and estates.
Aaron Ender has finished his first year at Western Law and is a summer student with the firm.