Are you in the process of buying a home? While it’s an exciting time, the process can be stressful and full of surprises. One of the most common issues that homebuyers face is closing delays.
Here are the top reasons for closing delays and how to avoid them!
- Financing Falls Through
Even if you have been pre-approved for a home loan, there is no guarantee that you will be approved for the mortgage. Lenders need to review your finances again before giving final approval, and any changes to your debt-to-income ratio, such as buying a car or switching jobs, can cause delays. To avoid this, make sure to avoid major purchases or job changes during the home buying process.
- Appraisal Falls Short
Lenders require home appraisals to ensure the property’s value matches the price that the buyer has agreed to pay. If the appraisal comes back lower than expected, it can cause a delay. To avoid this, make sure to hire a reputable appraiser and consider getting a second opinion if you disagree with the initial appraisal.
- Issues with the Title Search
Before closing on a home, buyers need to ensure that the sellers have the legal right to sell the property. This is done through a title search, which can uncover challenges such as unpaid property taxes or liens against the home. If there are any issues with the title, it can cause a delay in closing. To avoid this, make sure to hire a reputable title company and review the title search thoroughly.
- Contingency Failures
Many home purchase agreements include contingencies, such as a buyer needing to sell their current home to purchase the new one. If these contingencies are not met, it can cause a delay in closing. To avoid this, make sure that all contingencies are met before moving forward with the purchase.
Closing delays can be frustrating, but they can also be avoided. By staying on top of your finances, hiring reputable professionals, and reviewing all documents thoroughly, you can ensure a smooth and timely closing process. To avoid these delays, contact Shea Preferred Realty Group
