New Jersey’s soft closing dates can make solidifying moving plans difficult for buyers and sellers alike. While lenders try to close on the closing date set in the Contract, your closing date and time won’t get officially scheduled and make it onto the lender’s closing calendar until the lender has given you “final loan approval,” a.k.a., clearance to close, which comes after you’ve cleared all remaining conditions in your mortgage commitment, and the lender’s underwriting department is satisfied with your loan file.
If you’re planning to move into your new home soon after the closing, sometimes the moving company will need a firm moving date before you can give them one. This is why checking in with your lender to see if your loan is on track to close on the Contract closing date — is so important at the start of the Preparation for Closing phase. It establishes an anticipated timeline for the closing and the many planning decisions that happen in the days (or sometimes weeks) leading up to it.
To best navigate the tension between firm moving plans and the soft closing date, try to give yourself leeway with your moving date. To the extent possible, build in a margin of error into the timing of your move, in case the closing date gets pushed by a day or a few days. (The vast majority of transactions will close within a week of the original closing date, and many close on the actual closing date listed in the Contract.)
Of course, if your mortgage approval process is lagging or getting complicated and you have numerous remaining conditions to clear, or there are unresolved issues between you and the Seller, don’t make moving plans until you have a clearer sense of when you’ll be able to close. And even then, try to avoid moving on that anticipated closing date because delays can still happen, whether on your part, the lender’s part, or the Seller’s part. (You’re playing with fire if you schedule your move into your new house for the afternoon of the closing date set in the Contract. There’s no guarantee that you’ll be able to close in the morning, let alone on that specific date.) If you’re planning on having minor or major work done at the property before you move in, this time period between closing and move-in functions as a good buffer for the closing date.
Welcome to our Ultimate Guide to Determining a Buyer's Closing Dates in New Jersey. This guide is designed to help you, the home buyer, navigate through the complexities and uncertainties that often come with setting and adjusting your closing date.
Buying a home is a significant milestone, and each step of the journey can be filled with anticipation and, sometimes, unexpected turns. To help you traverse this path with ease, we've put together a comprehensive guide that covers the following areas:
Whether you're a first-time homebuyer or an experienced investor, this guide aims to shed light on the often nebulous process of determining your closing date. So let's embark on this journey and make your path to homeownership in New Jersey as smooth as possible!
First Time Homebuyer 101 - How Long Does It ACTUALLY Take To Buy a House?? 🧐🏠 | Video
The timeline for buying a house can vary greatly, with some areas having a norm of 15-20 days for closing, and having a fast track program and underwritten pre-approvals can speed up the process.
https://www.youtube.com/watch?v=KZ6dIhk9nco
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https://www.youtube.com/watch?v=D4H_ooksfxQ
New Jersey has a unique real estate tradition known as the "soft closing date." Unlike a "hard" closing date, which is a fixed and definite date for the transfer of property ownership, a soft closing date is more of a target 🎯, a range that the closing might occur within.
In the Garden State, when you enter a contract to buy a home, you and the seller will agree to a projected closing date. However, this date isn't set in stone 🪨, and it's not uncommon for it to shift based on numerous factors.
Here's what makes the soft closing date different:
1️⃣ Flexibility: The soft closing date allows for a certain degree of flexibility in the closing process. Delays can occur for various reasons—maybe the lender needs more time for final loan approval, or an unexpected issue arises during the final walkthrough.
2️⃣ Dependent on Loan Approval: The closing date and time won't officially be scheduled on the lender's closing calendar until the lender gives you "final loan approval." This comes after you've cleared all conditions in your mortgage commitment, and the lender's underwriting department is satisfied with your loan file.
3️⃣ May Impact Moving Plans: Because of this inherent flexibility, the soft closing date can make planning a move challenging. Most moving companies need a firm date, which might not be available until later in the closing process.
Understanding the concept of a soft closing date is crucial because it directly impacts your moving plans and potential contingencies. So it's essential to remain flexible, patient, and prepared for potential date changes. Remember, buying a house is not a sprint; it's a marathon 🏃♀️🏃♂️.
Once you've understood the concept of a soft closing date, the next step is to strategize how you'll navigate this flexibility in your planning. A well-laid plan can significantly reduce stress during this significant life event. Here are some strategies:
1️⃣ Buffer Time: If possible, try to build in a buffer between your closing date and your moving date. This buffer will allow for any unexpected delays in closing. For instance, if your closing is delayed by a few days, you don't want to be left scrambling with a moving truck full of your belongings.
2️⃣ Avoid Moving on the Closing Date: It might seem efficient to plan your move on the day of closing, but this can be risky. Delays can occur on the closing day, and the last thing you want is to be left with a moving truck and nowhere to go. It's safer to plan your move a few days after the expected closing date.
3️⃣ Prepare for Potential Housing Gaps: There's a chance you might find yourself in a situation where your lease is up before you can move into your new home. In such cases, explore options for short-term housing or staying with family or friends. Yes, it's not ideal, but it's better to have a plan in place just in case.
4️⃣ Open Communication with Your Landlord: If you're currently renting, maintain an open line of communication with your landlord. They may be willing to offer flexibility on your move-out date, especially if you've been a good tenant.
5️⃣ Stay in Contact with Your Lender and Realtor: Regularly check-in with your lender and realtor to ensure that everything is on track for the projected closing date. The more information you have, the better you can adapt your plans if necessary.
Remember, the key to a successful move is flexibility and preparedness. By considering these strategies, you can mitigate the impact of any unexpected delays and ensure a smooth transition to your new home.