Is Moving Into A Home Before Closing On It A Smart Move?

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As a homebuyer, you most likely are not anticipating any problems with the purchase of your dream home. Other buyers in the same position might feel comfortable enough in the process that they take possession of the home before closing. If you are considering exercising that option, here is what you need to know. 

Why Should You Move in Before Closing?

There are several good reasons for moving into a home before you have closed on it. For instance, if you are currently living in a rental, you can save on an additional month of rent by moving early. This is especially important if you are at the end of your contractual obligation for the rental.  

Moving in before closing also gives you a chance to start making the home your home. For instance, you can repaint, clean, and arrange your belongings so that you and your family are comfortably settled by the time closing arrives.  

In addition to these benefits, taking early possession of the property also gives you a chance to check for repairs that need to be reviewed with the previous owner. If the previous owner has agreed to those repairs, you can make a push for him or her to resolve the issues before closing. If he or she did not, you and your real estate agent can negotiate the seller to take care of those repairs.  

Why Should You Wait Until After Closing?

Although moving into your new home before closing could prove to be beneficial, there are some drawbacks to consider. One of the biggest issues is that if there are last minute negotiations that need to occur, such as those for repairs that are newly discovered, the seller might be hesitant to do so. By allowing you to move in early, the seller could argue that once you did, those repairs became your problem.  

Another potential drawback with moving into a home before close is that if there is an incident that leads to property damage, it is likely that your homeowner's insurance will not cover it. The insurance does not go into effect until you are legally considered the owner. In other words, not until closing. As a result, if disaster strikes, you could be left paying the expenses related to repairing the home. 

If you are unsure whether or not you should take possession of the home you are buying before closing date, consult with your real estate agent. He or she can help you assess the situation and make a decision.