Common Causes for Delays in Closing and Ways to Avoid Them
A real estate closing is an exciting experience, and everyone looks forward to it going smoothly and happening on the date planned. But a closing date is a target date, not an absolute. There are many factors that must come together perfectly to make that happen and having an experienced real estate professional determine a realistic closing date can make all the difference. Choosing a title company at the Lake of the Ozarks that is deeply familiar with the ins and outs of getting to the closing table on time is imperative. Even so, some delays in closing are not uncommon in the industry, and there are some things to keep in mind as you anticipate your closing date to help it happen on time.
Changes in finances since pre-approval.
Changes in your financial situation can be a bigger deal than you think, and you will benefit by not making any changes after getting your pre-approval. So don’t sign up for anything on credit, no matter how small. Do not change jobs, and make sure you pay all bills on time and avoid any liens before closing. 29% of delayed real estate closings are delayed due to financing issues. You can save yourself a lot of hassle by not making any changes until you close on your real estate transaction at the Lake of the Ozarks.
Contingencies and Repairs.
The more contingencies there are in a real estate transaction the more potential there is for delay. This is especially true if there is a contingency for the seller to buy his/her next home before closing on the one that is being sold. Another common reason for delays are problems discovered during the home inspection or even on the final walk through. Sometimes the bank may require certain repairs to be made as well before they will approve the loan. If any repairs not completed on time, the closing can be delayed.
If the home does not appraise for what the seller is asking, the bank may not loan the full sale price. If that happens, the buyer will have to make up the difference out of their own pocket, or the seller must reduce the price in order to carry on with the closing date. Negotiating an agreement on this takes time and can potentially delay your closing.
Of course, all title issues must be resolved before closing. This is an incredibly detailed process and must be done thoroughly and accurately for the sake of every party involved. Sellers can get a jump start on the process by starting the title search before the buyer even receives their mortgage commitment. A title search will have to be done one way or another, so doing it ahead of time will give your title company at the Lake of the Ozarks the time to correct any discovered issues in time for the closing date.
While contingencies and the appraisal value are beyond your control. It is good to know that you can help by not making any changes to your financial status during the closing process. It is also valuable to get the process started early just in case the title search reveals problems that require correction. Keep in mind the process is there to protect you and ensure your property rights, so you know you are getting exactly what you think you are buying. Our team of professionals at Arrowhead Title are experts at the entire process. So when it is time to close, don’t forget how much accuracy really matters, and choose the best title company at the Lake of the Ozarks, Arrowhead Title.