5 Items that can Cause Closing Delays

As the best title company at the Lake of the Ozarks, Arrowhead Title has experience in handling every type of real estate transaction imaginable. One of the most important factors for many of our clients is when they can expect their closing to take place. The closing date should be as accurate and timely as possible ensure a satisfactory experience for both the buyers and the sellers. In this week's blog, Arrowhead Title is giving you the top 5 items that cause closings to be delayed, so that you know what to be aware of to ensure your closing goes off without a hitch. 

1) An Aggressive Timeline

After you've found the home you can't live without and make an offer it's time to pick the closing date. If you're not as experienced with buying or selling homes, this date may seem far out. However, there are many things that go on behind the scenes to ensure that the home is clear and sound, as well as securing your ownership rights. It's essential when picking a closing date that you're not too aggressive. You'll have to take into account lender and underwriter requirements, giving them time to approve you for financing and secure your mortgage. Time for inspectors and/or appraisers to conduct proper inspections of the home and prepare reports. A good estimate for a closing date is about a month and a half to two months out. Plan for issues to come up during the closing process and give yourself plenty of time to adjust. It happens quite frequently that the date is set too soon and not everything is ready for closing. This means your closing date will have to be moved back, inconveniencing everyone involved, including yourself. 

2) Inspection/Appraisal Issues Arise

Home inspections and appraisals are vital to the homebuying process because lenders have certain requirements they must meet to lend appropriately. So, if a home comes it under value, it could cause issues on lending and therefore the sale/purchase of the home. Inspections can also cause potential issues, as some repairs can be costly and/or prevent the home from being able to used as collateral in financing. Repairs can also take an extended period of time as a contractor may have to be hired to fix the problem. You're then reliant on their schedule as well. 

3) Uncovering Issues in Underwriting

Underwriting is a complicated process that can make you feel very frustrated by the numerous questions, paperwork, etc. Underwriters have the job of making sure you are a reliable person to loan money to. They will review your credit history, banking statements, housing history, and much more. If any red flags come up, they will request more information or an additional explanation that is notarized to prove that what they have come across is not going to be an issue. This takes extra time with every additional request and can potentially delay the closing date. 

4) Discrepancies in the Closing Documents

Another potential issue that can cause delays are discrepancies in the closing documents. Closing documents are provided to both parties, the buyer and the seller, and must match before a closing can take place. If you or the sellers have a disagreement about the closing statement, it could take time to come to a resolution. Reviewing each statement you receive thoroughly throughout the process to check for any changes you weren't notified of or inaccuracies could save you valuable time when it comes to keeping your closing date constant.

5) Issues Arise on the Title

Arrowhead Title will do a detailed search to find out if there are any issues associated with the title on your property. While most title issues can be solved, it can take a long time and could potentially delay the closing date. The entire sale could even fall through if the problem can't be resolved or takes too long.

Arrowhead Title: Accurate, Timely, Transparent

As your premier title company at the Lake of the Ozarks, we work closely with all interested parties and communicate clearly and quickly to ensure that everyone is informed about what's going on with the transaction. Our goal is to use our dynamic solutions and experiences to quickly identify and resolve any potential issues that arise during your transaction to help ensure a smooth closing. Delays are likely to happen during your closing process, but know that we work diligently to resolve any issues and that with your patience and efforts, you will soon become the proud owners of your dream home at the Lake of the Ozarks.

Where Accuracy Matters!


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