All the parties involved in a real estate deal usually want a fast closing; this includes buyers, sellers, and their respective agents. As a buyer, delayed closing may cost you money and inconvenience you by delaying your move into your new home. Unfortunately, the speed for closing the sale isn't entirely up to you; here are four situations that you cannot control and that can easily delay the closing:
When a lender advances you a mortgage, it has to commission an appraisal to confirm that the property is worth at least as much as you are buying for. This is one of the ways the lender can be sure its investment is intact, and it can recoup it if things go south and you can't pay the mortgage.
Therefore, if the appraisal returns a low figure, the lender will halt the deal; until the issue is ironed out. For example, the seller may have to lower their price or you may have to commission another independent appraisal to confirm the property's price.
Liens on the Title
The closing may also be delayed if investigations reveal a lien on the property. A property lien is a claim placed on the property by a third party. For example, if the seller owes huge debts to other people, they may lay a lien (claim) on the property to make sure they will get their money. Obviously, such a claim must be cleared before the purchase can proceed.
Difficulty Finding Insurance
Home insurance is necessary both for the lender's sake and for your sake; this is another way for the lender to protect their investment. Unfortunately, you may find a hard time finding an insurer willing to sell you coverage if the property has some issues. This may be the case, for example, if the previous owner made numerous claims on the house and the prospective insurer is wary of the risks. In such a case, the closing will be delayed until you can land a willing insurer.
Errors on Documents
Lastly, the closing may also be delayed if there is an error on any of the documents. Don't forget that many people are involved in the sale of property, and some of the documents (such as the title) were prepared long before you had an interest in the property. Any such errors must be cleared before the transaction can be concluded.
Hopefully, your purchase process will run smoothly, and you won't have to deal with any delays. Work with your agent every step of the way to boost your chances of closing the contract on time.Share