5 Reasons Your Real Estate Closing May Be Delayed

January 08, 2019

When it comes to buying and selling real estate, closing a transaction isn't always cut and dry. There typically tends to be at least a few small hiccups along the way. As a buyer or seller, you may not see those hiccups because your lender, real estate agent, and title company at the Lake of the Ozarks are working on the back end to address the issues as quickly and painlessly as possible. But they do happen. Unfortunately, some problems that arise can cause delays in the closing process. Here are 5 reasons your real estate closing may be delayed.

1. Unrealistic Contract Dates
One of the most common reasons why a real estate closing is delayed is because of unrealistic contract dates that were agreed upon in the purchase offer. If there isn't any issues with financing, inspections, contingencies being handled or any other number of variables, it may be easy for all parties to meet the set deadlines. However, when it comes to real estate transactions, it's hardly ever the case that something doesn't arise to throw off the smooth flow of the transaction. Generally speaking, it can take roughly 45-60 days for a real estate closing to occur after a purchase offer is accepted.

2. Appraisal or Inspection Issues
When buying or selling real estate, a few big factors that play a significant role in the closing process are the appraisal and inspection. Not only do they affect financial aspects of the contractual agreement, but they can also determine whether the transaction will finalize or at the very least require a delay in closing. If a property appraisal comes back lower than the original agreed upon purchase amount, this could cause a counter-offer to be submitted by the buyer, which could essentially break the deal. If the inspection comes back with some serious issues and the two parties can't come to an agreement on resolving the issues, it could cause the deal to fall through. At the very least, either of these common occurrences could cause a delay in the process while the buyer and seller are trying to compromise.

3. Lender or Underwriting Issues
Often times, buyers think that once they receive their mortgage commitment that they're clear to close. While most of the time this is true, most lenders will review a borrower's credit information another time before finalizing the loan just to ensure the security of the loan. If any noticeable changes in credit are detected, this will likely throw a red flag in underwriting and further documentation will be required for review. That's why it's essential that while you're waiting for a real estate transaction to finalize, you don't make any changes to your credit history that could affect the loan approval.

4. Title Related Problems
Another popular reason why a real estate closing can be delayed relates to the title of the piece of real estate. There are certain title related problems which actually arise frequently. Most of the common title related problems can be solved, but take significant time and will likely delay the closing or possibly cause the deal to fall through due to time constraints.

5. Discrepancies in Closing Statement
Prior to a closing in real estate, both the buyer and seller are given their respective closing figures. This document breaks down what each party is financially responsible for within the transaction. A common issue that causes closing delays is due to one or both parties being in disagreement of their financial responsibilities as they're laid out on the closing statement. When this happens, there may be a delay in closing because the parties need to re-evaluate the terms of the contract and come to an agreement on who's covering what.

Accuracy Matters at Arrowhead Title
These are just a few of many reasons your closing may be delayed. While we know that delays do happen with real estate transactions, we try to make it as seamless as possible on our end. When it comes to handling your real estate closing, we do our very best to ensure that any issues that arise are handled promptly, professionally, and with as little hassle as possible. At Arrowhead Title, Inc., our goal is simple. We want to provide you with dynamic solutions to all aspects of your real estate transaction - from professional, accurate title services which protect your investment to escrow and settlement services which handle your funds with utmost integrity. Let us conduct your real estate closing!

The Lake of the Ozarks' Most Trusted Title Company

Where Accuracy Matters!