Common Factors That Can Delay a Real Estate Closing
The real estate closing is the last step you must take in order to officially become the owner of a home. Once you submit a formal offer to a property, the closing will likely take place in about 30 days. The closing date that you and the seller agree on will only be a targeted date, meaning that it could potentially change. Some of the reasons for the delay are outside of your control, as the lender may require more time to get everything ready or there are other complications. Here are some of the most common delays in home closings that you will want to avoid:
Impractical Time Frame
One reason you may not close on time is because you have an impractical time frame for the closing. Usually, your real estate agent will help you avoid this error before you make an offer. He or she will know how long the process should take after factoring in such things as the type of financing you are using, contingencies included, and more. Try to discuss the time frame in-depth with your real estate agent before setting a closing date that isn’t practical for your situation.
Delays in Financing
A very common real estate closing delay is due to financing. On average, a pre-approved loan will help you close on a home faster than a pre-qualified loan. Despite this, pre-approved loans do not completely protect you from all financing delays. Issues can often develop once you have submitted the loan application to your underwriter. The underwriter can then notice a number of factors that can cause delays, such as errors on your credit report, additional debt you have incurred on your credit report, title issues, changes in your marital status, changes in income or employment, missing insurance information, missing financial documentation, and etc.
Additional Documentation Needed
Even if you have been pre-approved for a mortgage, there are still additional documents that will be needed to finalize your loan and ultimately close the sale. One document ends up requiring multiple documents if the lender sees anything off-putting. The final bank statement and credit report that you submit to your lender could cause them to request a letter of explanation for anything that may appear abnormal. It is best to keep this in mind and try to make all documents as transparent as possible.
Failure to Complete Home Repairs
Real estate delays can often occur if the seller doesn’t follow through with the home repairs you agreed on. This is a major problem and could potentially cause the closing to get delayed or even canceled altogether. A good way to avoid this is to make it abundantly clear which repairs are required after an inspection is completed. Actively remind the seller if you feel that these repairs aren’t going to take place before the closing date.
Title Report Issues
Arguably, the most common reason for a closing delay involves issues in the title report. Make a point to request only clean and clear title from your seller. Sellers should check and make sure they do not have a previous lien that needs to be handled or other overlooked items. If the lender sees a problem with the title, it could cause complications that would extend the targeted closing date. This is why it is so imperative that you select a good title agency to help prevent or clear any title issues. The title agent will play a pivotal role in spotting any errors on the title and clearing them up. If you wish to find one, FIT Agency provides comprehensive real property title and settlement services to realtors, lenders, attorneys, developers, government entities, and homebuyers and sellers. We are proud to provide personalized service by getting to know each client and working with them individually to achieve their goals. To learn more, contact us today.
Our goal is to treat you with personalized service by getting to know your goals and helping you to achieve success. We’ll partner with you to provide fast and accurate title and settlement services. By continuously analyzing our processes and integrating the newest technologies, we streamline our processes so you get faster turnaround times to meet your important deadlines. Start building a professional relationship with us today. Send an inquiry now.
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