Can anyone tell me the reason why some buyers/investors choose long settlement periods?
If an initial deposit of 10% of the loan is required, does this deposit have to be paid only at the end of the settlement period?
Thanks
I have one investor that never has less than a 3 month settlement on anything he buys, only puts the absolute minimum down as a deposit ($500)and then gets it valued just before settlement as he himself is a broker.
In a moving market expecially, he buys where he expects an immediate growth in value, by the time he gets his val done the property he is buying may have gone up enough to cover his deposit too.
Secondly long settlements are usually required if someone is selling their old home to buy the new one. Delays can be due to titles not being available and Bank A being slow as they dont want to loose a security to Bank B. They take tiehr time so sometimes there is a combination of reasons for a long settlement. Im sure other forumites will give yu more possible reasons. Hope this helps.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!
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