In today’s modern world where instant gratification rules, everything can be obtained so much faster than before. There’s fast food, drive thru services, same day delivery, and so much more. Mortgage has apparently joined the bandwagon and now there is also a thing called same day closing mortgage.
What Is Same Day Closing Mortgage?
Same day closing mortgage allows you to sell your property and at the same time use the money from the sale to buy another property so you get a new home instantly. In theory, it’s a good thing. You don’t have to wait for days before you can move in to your home, your money from the sale will not be used for un necessary things, and only one process will be done to accomplish the selling of old property and buying new property. It’s a very convenient process. But that seems to be the only up-side to this arrangement.
Many experts, including lawyers and seasoned mortgage brokers, do not recommend same day closing of your mortgage. Here are some of the reasons:
The Timing is Crucial
If the person buying your house does not get the money available on his account on time, the lawyer may also not have enough time to close the sale of your property. This will then result to you not being able to use that money to fund the new property you wish to buy. The seller of the new property can see this as a breach of trust and could pull back from the deal altogether.
You Will Need to Vacate Your Property Without Any Guarantee That You Have a New Place to Move Into
This can happen sale has been finalized on your property but the property you want to buy still has some problems. You could be left without a home for some time.
In Expediting the Process You Could Overlook a Few Things
In your haste to get the deed done, you may overlook legal clauses, property problems, and other things about buying the property. You may not have seen a clause in the contract on the day the contracts were signed and when you were able to look at it closely it turns out you do not agree to that clause.
The Fees You Need to Pay May Be Huge
With the quick transaction, the attorney’s fees, the broker’s fees, and all other fees may be bigger than if you process your mortgage the usual way. This can set you back a huge amount. But if you really need that property fast, the amount to be paid in fees can easily be overlooked.
Haste Could Sometimes Make Waste
When you rush into buying a property, you lose out on looking for a better prospect. You may also lose out on selling your property for a better price.
These are the risks that you take in order to obtain and sell a property in the fastest way possible. It’s not an ideal thing but some people find this process better than traditional buying and mortgage. Use the process that works for you, and if you have any questions or concerns, talk to your broker.