Expert: Dick Dennis - 3/17/2010

Question
Hello,

My husband and I are currently renting an apartment in NC and plan on moving to Oxford, MS in July/August when our lease here is up.  We have found a house we are very interested in buying and are waiting to hear back from the representing agent.  We have been pre-approved for a loan, but could not actually start paying until July (because of owing rent until then).  If we were to make an offer now and put down earnest money, and if the owner was willing, could a closing date be set as far out as four months away in July?  Or is there any other way to "save" the house for us until then?  Thank you!

Answer
It certainly can be done, Gillian . . . if the seller is willing. My guess the agent for the Oxford house would probably ask you to make your deposit NON-REFUNDABLE just to make sure you do buy the house. After all, so many things can happen within four or five months. I thing you would agree.

Or, you can go through the motions of buying the house and ask for closing date four or five months off. They might accept your offer to close that far off, especially if your offer is close to or at the listing price.

There is one other way that is not used too often these days: Make a REFUNDABLE earnest money deposit to close the day you ask, but the seller reserves the right to keep the house on the market and if they do receive an acceptable offer, you would then have 72 hours to activate your purchase. Failing that, you lose the house, but you should be able to get your deposit returned.

Having said all that, there is one thing you may have trouble with and that is the lender. When a bank agrees to give you the loan, they expect the purchase to close within 30-60 days. Obviously that would not work with you if your closing is at least 120 days off. So, you would have to work with the lender and see how they can oblige you. With all that time to work with you should shop around and search for a lender who will give you acceptable terms and the time you need.

However, lenders . . . in this economy probably will not give you the loan . . . period. Because you are a new resident in the area. Even in the best of times lenders are reluctant to give loans when the borrower is new to the area. So you would have to ask any prospective lender that question, too. I do wish you well.

Dick Dennis
dixiedee13@aol.com