Why Would a Closing Date Be Extended?
Sometimes a home purchase doesn’t close on the original date listed in the purchase contract. When that happens, the buyer and seller can agree to extend the contract, giving everyone the additional time needed to complete the transaction. An extension helps keep the sale together while any remaining issues are resolved.
Common Reasons for an Extension
- The appraisal hasn’t been completed.
- The lender needs additional documentation.
- The title company discovers an issue that must be resolved.
- Repairs required by the appraisal or loan program need to be completed.
- The seller or buyer needs additional time to move.
- Weather or other unforeseen events delay closing.
Does an Extension Mean Something Is Wrong?
Not necessarily.
Many home purchases close after a short extension. In most cases, it simply means one part of the process needs a little more time to ensure everything is completed correctly.
Can the Closing Date Be Changed?
Yes. Both the buyer and seller must agree to the extension by signing an addendum to the purchase contract. Once everyone agrees, the closing date is updated.
My Advice
If you’re told your closing date needs to be extended, don’t panic. Ask your lender and real estate agent why the extension is needed and what is being done to keep your purchase moving forward.
Good communication between all parties is the key to a successful closing.