7 Glitches That Wreak Havoc on Your Closing Date
After a long search and strenuous negotiations, you’re all set to buy your new house. Before you get too cozy, keep in mind that there are many things that can disrupt the process. Some of the most common problems can be prevented ahead of time if you’re keeping a close watch on the progression. But there are a number of hitches that can wind up pushing your closing date back a bit.
- An Issue with the Title
Prior to closing, a title search on the home you’re buying is required to ensure the title is clear of any problems that could inhibit you from taking ownership. If any problems are uncovered, it could prevent the closing from being completed.
- The Inspection Uncovers a Serious Flaw
Having a professional comprehensively inspect the home to make sure no major problems are apparent is key. A home inspection can save you frustration and heartbreak down the road and if it does reveal any major problems, closing may be delayed while you negotiate to remedy the issues.
- The Appraisal Is Too Low
Before you can buy a home, the bank needs to confirm the home is worth its estimated value. If the appraisal comes back low, the bank will only agree to provide a mortgage based on the appraised value, leaving the homebuyer to come up with the difference.
- A Problem on the Seller’s End
If you’ve got a seller who’s in the process of buying a new home or building one, they might ask you to change the timeline to accommodate their moving date.
“The most common problem we see on the seller’s side is divorce,” Bobbie Price with The Platinum Group Realtors said. “When the sale is affected by people on opposing sides, it can have a significant influence on the timeline.”
- Your Mortgage Financing Falls Through
A mortgage commitment isn’t finalized until all of the paperwork is signed. “If something comes up during the underwriting process,” Price said, “the lender can back out of the deal. This process happens right before closing and they check on everything, including job security. The biggest mistake buyer’s make is financing something–a new car, new appliances, or anything else, causing the lender to reject the mortgage.”
- You Can’t Get Insurance
Insurance records contain details of previous claims made for a house and if there have been any claims filed on the house you’re trying to purchase, insurance companies might determine the house is too great a risk.
- Final Walk Through
“The final walk through is very necessary,” Price said. “It should take place the day before closing. We ran into a situation where the seller’s waterbed had completely rotted the floor underneath and discovered it during the walk through.”
Any number of problems can occur between going under contract and closing the transaction– a thorough walk through ensures buyers confirm what they’re getting before signing on the dotted line.
So many issues can cause your closing to get delayed or withdrawn, and even something small can turn into a lengthy delay. A professional, experienced Realtor can help you be prepared for the worst as well as help you weather the storm if an issue does pop up.
The Platinum Group, Realtors are hometown experts in the Pikes Peak region. Upholding the highest level of honesty and integrity, the Platinum team cares more about relationships and service than the number of transactions they close.
For a no-obligation consultation call 719-536-4326 or visit PlatinumHomeSales.com