Transitioning from renter to homeowner can be a feat in its own right, especially when it comes to the new terminology. How long does it take to close? When do you need to give your current residence notice to vacate? Is it even a good time to buy? It can all be confusing, but your Realtor® and mortgage broker will be there to guide you through. Until then, here are a few things to help:
What is closing, and what does it mean?
Closing is the final step in the process of making the house yours, like truly yours! Meaning the closing date is the day you become the legal owner of YOUR new home.
Determining your closing date is done right away with you (the buyer) including your desired close date with your offer. The seller will either accept, reject, or negotiate. However, once the seller accepts your offer and earnest money–usually 1% of the offer price to secure the contract–you can expect to wait a while before you get the keys in your hands.
Keep in mind, even though you and the seller agreed on the closing date, factors such as outstanding repairs or delays with the appraisal and various other occurrences could result in your closing date being delayed. However, your Realtor® will be working with your lender and title agency to ensure all parties have enough time to execute the deal and any issues are dealt with in a timely manner.
Timing it right.
Various variables can come into play when closing, so finding the perfect time to give the notice to vacate your apartment can be a little daunting. Your Realtor® is here to help break down the costs of putting in an offer and figuring out your payment timeline.
Here at the Realm Agency, we recommend starting house hunting 60 to 90 days out from your desired move date or, in this case, the end of your lease. We want to ensure you are 100% comfortable putting in an offer if you find the home you truly love. Giving your notice to vacate 60 days in advance is perfect because it will be easier for you to do month-to-month or find a temporary place to stay if delays do happen versus getting out of another lease term.
Now the million-dollar question, will you be stuck paying rent and a mortgage in the same month?
Well, you are in luck. Mortgage payments are collected in arrears. Meaning your first mortgage payment won’t be due until a full month after the last day of the month in which you close. Whereas when renting an apartment, you are paying in advance. For example, when renting an apartment, you pay on April 1st for the month of April. When you pay your mortgage payment for April, you will pay it on May 1st. This delay in paying your first house payment will help with the overlap of renting.
When is the best time to buy?
The best time to buy genuinely depends on you and what you are comfortable with financially. However, right now, interest rates are beyond the lowest we have seen in a long, long, long time.
If you have more questions and are interested in making the renter-to-homeowner leap, call or text us to connect with a local Realtor® who will help you find your dream home, (214)814-4117. We are entirely focused on finding you a home that fits your lifestyle.