How quickly can you access your funds if you want to pay cash for a home? You might be surprised to learn that it can take several days to get your cash from an investment or retirement account.
If your funds are not readily available in a savings account, you need to allow yourself plenty of time to have the funds wired from your investment account to your bank or to the title company. It can take 48-72 hours or more to get your funds once you have made the request. You probably won't be able to get your funds the same day you request them, or even the next day.
I recently represented the sellers on the sale of their home, and the closing was postponed four days beyond our scheduled closing date because the buyer did not place the order for his funds early enough. He called his financial advisor the day before closing to have the funds wired directly to the title company. Unfortunately, he found out that it would be three full business days before the funds would be delivered. The result was that our closing which had been scheduled for Friday morning did not happen until the following Tuesday afternoon.
This oversight on the buyer's part had a domino effect on other transactions. My sellers were planning to use the proceeds from the sale of their current home to help pay for their new home. The schedule was tight for everyone, because we were closing on the old home and the new one on the same day. When the closing on their current house was delayed several days, they also had to postpone the closing for their new home. This delay caused frazzled nerves and a lot of stress for both the seller and the buyer.
So, if you are planning to pay cash for your next home, be sure to talk to your financial advisor well in advance and know just how long it will take to obtain your funds. Be prepared, so your closing won't be delayed!
Comments(33)