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.
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.
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.
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.
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?
Buyers frequently put down payment as much money as they can. You should, however, always have extra cash on hand to cover closing costs such as land transfer fees, legal fees, and any bills the sellers may have pre-paid, such as property taxes or utilities. If the lender appraises your home at a lesser value than you bought, you may need to put down a more significant down payment.
Before you close on a property, you'll need the documentation to confirm your divorce, as well as copies of any child support and alimony filings. If you don't have copies on hand, you may need to seek a copy from the states' judicial court.
By taking care of this step ahead of time, you can avoid unpleasant surprises. It will be required in order for you to be accepted for a mortgage.
Ask your lawyer or notary to obtain title insurance on your behalf to protect you from title fraud and other concerns. It enables you to close faster, even without a survey and offers gap coverage as well as protection from paying liens or obligations left behind by past owners.
The final days leading up to a real estate transaction's closing are usually exciting moments for all parties involved. The seller is relieved to have their house sold; the buyer is looking forward to moving into their new home, and a real estate broker/realtor is looking forward to another completed transaction and a well-deserved commission.
However, not every real estate deal proceeds as planned. A variety of factors can cause closing delays. You may be able to influence some of them, while others may be beyond your control. However, by understanding how to minimize closing delays that are within your power, you can make the closing process run as smoothly as possible, benefiting all parties.
Assistant Manager, Real EstateTreadstone Associates