Transitioning from Renting to Owning a Home

Transitioning from Renting to Owning a Home

Making the change from renting to owning can be daunting, overwhelming, and confusing, but a responsible realtor and a trusted mortgage broker can ease your worries and explain earnest payments, escrow, and amortization in the month (give or take) leading to close. Figuring out the logistics had my head spinning and the unknown was the most frustrating part, however, there are a few things to know that can help plan your move.

It typically takes 30-45 days to close on a home.

Hooray! You found the home of your dreams, the seller accepted your offer, and you’re poppin’ the bottle of bubbles. The closing period is agreed upon once you go under contract, and it can be delayed if something like a failed home inspection occurs, but you can generally plan around this average: 30-45 days from the date of an agreed contract and the closing.

Mortgage Payments are collected in arrears, giving a renter a significant grace period between payments. 

Let’s assume your rent is due on the first of the month. You are paying rent on January 1st in advance to live in your place for the month of January. Mortgage payments are collected in arrears meaning you are paying for the month of January on February 1st.In fact, your first mortgage payment won’t be due until a full month after the last day of the month in which you close. Say you close mid- January, your first mortgage payment is due March 1st.

Timing Your Lease-End

There are several variables and multiple parties involved in purchasing a home so it needs to be stated that there are no guarantees, but the previous information should give you some breathing room and allow you to take the leap and hope for the best. You’ll want to discuss the situation with your landlord, and your realtor to come up with the best plan to fit your specific timing. Your agent and mortage broker will be willing to help you budget accordingly and time everything right.

Any further questions?

Are you curious about your specific siutation? Curious about your buying potential and options? Please, give me a call! I would love to chat with you! 502-639-9617

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