
Closing on a house is supposed to be a happy occasion when you can finally call a house your home. However, these moments often get delayed, sometimes leading to weeks or months of frustration. The primary reasons for delay are, more often than not, financing problems, title issues, inspection discrepancies, unrealistic deadlines, and disputes arising from the final walkthrough. If you are buying or selling a home soon, check out these six common roadblocks to closing.
Financing Fiasco
Financing is a crucial part of any real estate purchase but can create significant closing delays. A mortgage rejection can delay the process from 60 days to several years. But don’t worry! You can prevent potential financing roadblocks by getting an initial pre-approval before making an offer. Regularly communicating with your lender, providing necessary documents promptly, and avoiding any significant financial changes, like changing your job, during this time can go a long way in preventing delays.
The Tangle of Title Issues
Title issues are another common reason for delays in real estate closings. Check out our blog on unexpected title issues for specific issues to watch for. How do you avoid title issues? If you’re selling your property, you need to have an experienced attorney on your side to clear title issues. We at Bradford Miller Law have seen and dealt with almost everything when it comes to titles, so you can feel comfortable hiring our firm. On the Buyer side, we sometimes have to wait until the title can be cleared up on the Seller side, and sometimes, we have to help the Seller’s attorney, who may not have as much experience.
Inspection Infection
Home inspections can open Pandora’s box of potential issues, leading to delays if the buyer and seller can’t agree on repair plans. To overcome such blockages, sellers can commit to resolving major issues before final walkthroughs or offer concessions for the buyer to take care of them.
The Appraisal Abyss
Sometimes, the property’s appraised value falls below the agreed purchase price, stopping the process. If the appraisal comes back under the agreed purchase price, the buyer and the seller must negotiate. The seller could consider lowering the asking price, or the buyer could pay out the difference in cash. There’s also the option of challenging the appraisal if the buyer can provide.
Final Walkthrough Woes
The final walkthrough is the last opportunity for the buyer to ensure that everything is as the terms agreed upon. Any mishap here can push back the closing date. To avoid this, buyers should meticulously inspect the property and address any red flags with their real estate agent or attorney. Sellers should double-check everything is in order before leaving the property.
Ticking Timebomb of Deadlines
Another significant reason for delays is unrealistically tight contract dates. Setting a reasonable timeline for the closing can make this process smoother. If the set deadline is too short, any snag might jeopardize the entire deal.
Let Us Help!
If your closing is approaching, understanding these common roadblocks and how to handle them could mean the difference between a smooth, timely closing and a frustratingly delayed one. To ensure a smooth transaction, contact Bradford Miller Law, P.C. We’d gladly represent you.