How to Avoid Delays in Closing

You'll start working toward closing once you've discovered your dream house, made an offer, and had that offer accepted. It's an exciting moment, but many purchasers experience delays. When all you want to do is move in, these delays might be annoying. A variety of unanticipated difficulties might arise during the closing process, causing the transaction to be delayed or halted. However, the suggestions mentioned below will help you avoid typical hiccups.

Suggestion #1: Don't go crazy with your spending

Now that you've had your mortgage approved, you might believe it's time to start shopping for furniture or other goods for your new home. Avoid spending substantial amounts of money, whether in cash or on credit, since this will harm your relationship with the lender. A few days before closing, your financial situation will be reviewed, and any significant changes from your first assessment will need to be evaluated to ensure you can still pay off your mortgage.

Suggestion #2: Change jobs with caution

While it may appear to be a good idea to get a better paying job before your closing date, it may influence your lender's discretion to close on time. They may want a few months' worth of pay stubs from your new job to demonstrate that you have a consistent income. While it may not be a deal breaker for your lender, it might cause the closing date to be pushed back.

Suggestion #3: Provide papers on time

Your closing date might range from 30-90 days after you sign the buy and sell agreement. You have some time to get the paperwork to your mortgage broker and lawyer or notary, but don't wait too long! The sooner you submit all of the essential documents, the better prepared your team will be to deal with any unexpected findings or difficulties that may occur.

Suggestion #4: Keep an eye out for realistic house valuations

Another reason for the delay might be that the seller has advertised the home's value at a higher price than your lender estimates. Before approving the loan, your lender will want to make sure the house is truly worth that amount.

While you may not be able to control this completely, there are steps you may take to increase your chances of success. Make your own investigation of the pricing patterns in the areas where you're looking. You'll be able to spot possible red flags if you have a good understanding of the area.

Working with a reputable real estate agent will provide you with an advantage. Inquire about any previous house appraisals. When was the last time you completed one? How does it compare to the current market worth of your house? Have there been any significant renovations since then?