Simultaneous Closings On Home Purchase And Sale
This BLOG On Simultaneous Closings On Home Purchase Was UPDATED On August 17, 2017
Simultaneous Closings On Home Purchase And Sale:
Many homeowners need to sell their current homes in order to get funds for the down payment for another home.
- They need to count on the down payment from the sale of their exiting home.
- They make the purchase offer with a contingency of selling their home.
- This is often a turn off for home sellers and the purchase offer is often not accepted by sellers.
- The Gustan Cho Team at USA Mortgage, a division of DAS Acquisition Company LLC has a bridge loan program that will fund a bridge loan against the exiting property for 90 days.
- In order to qualify for this bridge loan, the exiting property needs to have equity.
- USA Mortgage will offer a short term second mortgage bridge on the home of up to 85% LTV on the home buyer is selling so they can buy the new home.
How Does Simultaneous Closings On Home Purchase And Sale Work?
- So in order to buy another house, they need to sell their current home first.
- This is very typical and can be done with proper planning.
- It is a chain process and is known as simultaneous closings.
- Simultaneous closings normally happen the same day.
- The homeowner might schedule a simultaneous closings the same day by closing on their current homes first and closing on their home they are purchasing.
Home Buyers who need to sell their home in order to come up with the down payment to purchase the new home can now qualify for USA Mortgage short term second mortgage bridge loan. USA Mortgage will bridge up to 85% Loan To Value on the exiting property for 90 days. If it goes pass the 90 day mark, USA Mortgage will extend the short term loan for another 90 days.
Need To Notify Mortgage Lender, Realtors, Title Company, And Attorneys
Those who are planning on having simultaneous closings, they need to make everyone involved about plans, especially the mortgage lender.
- Mortgage lenders normally want to verify the funds for the down payment prior to scheduling a closing.
- However, if borrowers tell them that they are requesting a simultaneous closing, the mortgage lender will probably just require a seller’s settlement statement and will allow the simultaneous closings.
Make Sure Home Buyer Has Their Act Together
One screw up from the buyer’s side can blow the whole deal.
- Make sure home buyer has a iron-clad pre-approval and is on top of their mortgage conditions.
- Make sure the appraisal is order well before schedule and that the home buyer gets a clear to close as soon as possible.
- Make sure as the seller that real estate agents and the buyer as well as the buyer’s agents are all in the same page.
Make Sure Everything In Order
Make sure to get a clear to close by the mortgage lender as soon as possible and meet all of mortgage lender’s conditions.
- Try not to procrastinate and make sure to quarterback the team.
- From realtor, mortgage banker/broker, title company, and attorneys.
- If everyone is on the same page and work together as a team, a simultaneous closing should go extremely smoothly.
Home Buyers who are exiting their existing homes to purchase a new home can now offer the new purchase without a contingency with USA Mortgage bridge loan program. Please contact us at The Gustan Cho Team at USA Mortgage at 1-800-900-8569 or text us for faster response at 262-716-8151 or email us at firstname.lastname@example.org. We are available 7 days a week, evenings, weekends, and holidays.