Buyers Beware: Top 5 Closing Delays
Everyone is anxious to close their first home but many are amazed when the run into delays first the lenders and the inspections, then the holidays roll around…..you find yourself thinking what’s next….TIME it can kill a deal like nothing else!
1. Problems with the lender – This can happen for a number of reasons, ranging from underwriter delays and appraisals not coming in as expected. Find out up front, anything that you may need to provide to your lender to avoid delays.
2. Inspections not completed – Many homeowners think that the home inspection covers it all. Don’t make this mistake, although home inspections are important, lenders may require termite, well and / or septic inspections as well. If you wait to closing to find out, you then have to find and inspector, get scheduled and then wait on their report.
3. Holidays - Avoid scheduling your closing around a holiday. Many people forget about the minor holidays that close down city and county offices. Having you closing around such a holiday can delay the recording of your deed, which allows the seller and other parties involved to be paid. So, if the seller says “No check – no key”, you may not get into your home for three or four days if you close around a holiday.
4. Property not ready – Keep in mind when the writing your contract if repairs that you have put in as conditions are not completed the closing will not happen. Also many times homeowners will not complete other tasks requested by the buyer, so stay on top of any details that need to be completed by the sellers to close this may hold things up.
5. Time Kills Deals – the longer it stretches out the more likely the deal will never close!! If it doesn’t kill it, time can still be costly. Many lenders charge the buyer a fee for everyday past the closing date that a deal doesn’t close….be aware of these clauses and make sure you meet the deadline or are ready to pay.
So don’t be a sitting duck, watch for delays and push things along….ask questions and plan it’s the best way to keep a deal on track. You can rely on your agent to take care of many of these things but make sure you are aware of the details too.
Need more advice, before you decide let us know we’ll be glad to help.
